Most ICOs have three phases to their tokensale, including presale, private sale, and crowdsale. Note that not all ICOs follow this pattern with some ICOs opting to not hold two or fewer sales because of different reasons. We will highlight these three ICO sale events below.
Presale is a tokensale organized prior to the main crowdsale. They are promoted and announced via the social media, website, and through advertising. A presale provides the ideal middle ground for contributors who want higher discounts. Various bonuses may be offered depending on how early contribution is made and how big the contribution is.
– Potentially greater discounts on tokens.
– Token purchase is assured.
– Higher possibility of buying more tokens
ICO Private Sale
This is typically defined as the sale of tokens to investors that aren’t announced or open to the public. If a private sale is announced, ICOs typically have stricter requirements regarding participation and are selective about who they let in on the private sale. Bonuses may be offered according to how enormous the contribution is.
– Greater bonuses.
– The possibility of quick return.
– An assured supply of tokens should ICO hit hardcap.
– Better chance to acquire more tokens.
This is the main tokensale of any ICO. An ICO crowdsale is widely advertised and promoted than presale. Crowdsale usually has the least risk, but it offers lesser discounts compared to the other two ICO token sales. Various discounts can be offered according to how early contribution is made and how significant your contribution is.
– Ability to gauge ICO success.
– Lesser chance of increased cryptocurrency volatility.
– Easier KYC because this sale mostly doesn’t need accredited contributors.
– Lower minimum purchase amount
– More liquidity for tokens since
Choosing the right ICO sale to participate in can be overwhelming. As a contributor, you must know your risk appetite so that you can choose the ICO sale to achieve the results you want. Evaluating all options can take time. However, proper planning will allow you get the most of any ICO sale you decide to participate in.