What Is an ICO Pre Sale?

ICO Presale or also known as Pre-ICO, is the token sale event that Blockchain enterprises run before the official crowdsale or ICO campaign goes live. The fund-raising targets for Pre-ICOs are often lower as compared to that of the main ICO and tokens are usually sold cheaper.

For the purposes of prudence, Pre-ICOs ideally make use of separate smart contracts from the main ICO event – This is informed by the need to avoid a mixture of Pre-ICO funds with the main ICO to enable proper and easy account reconciliation and audit.

Some projects run Pre-ICOs as a way to accrue funds to cater for the expenses incurred on the way to launching the main ICO. Some of the expenses include paid promo ads, strategic recruitment and meet-up costs to help whip up investor interests.

Downsides Of Investing In Pre-ICOs

One unpleasant side-effect of ICO presales however is that early investors or adopters tend to dump tokens as soon as they become tradeable on exchanges. They often sell the tokens at ICO price when in fact they got the tokens for less than the price of the main ICO. This way, they make substantial profits whiles the value of the project token subsequently takes a downward hit.

ICO Guides: Introduction

Section 1: What is an ICO?

Section 2: How are ICOs created?

Section 3: History and evolution of ICOs

Section 4: ICOs Vs IPOs: What is the difference?

Section 5: How to participate in an ICO?

Section 6: Advantages of investing in ICOs

Section 7: What are the risks of investing in ICOs

Section 8: How to evaluate an ICO?

Section 9: How do you spot an ICO scam?

Section 10: How to trade ICOs

Section 11: What are the regulations in the ICO world?

Section 12: Should you invest in ICOs?

Section 13: How to set up your own ICO?

Section 14: What might be the future of ICOs?