What is a crypto presale

Cryptocurrency presales are one of the most attractive and effective methods of raising funds for further development for blockchain startups. At the same time, crypto presale gives investors early access to tokens of promising crypto projects at very low prices – before they enter the more public space.

For presale launches, the project developers allocate a certain amount of their own tokens, which users can get by exchanging for existing cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), BNB, Solana (SOL) or stablecoins like USDT, USDC, etc. Also, investors can buy presale tokens with internal tokens that are issued by specialized platforms, so-called launchpads.

There are many platforms for conducting various presales, but here are a few examples of the best crypto presale platform:

·        Polkastarter

·        Seedify

·        ByBit Launchpad

·        DAO Maker

·        GameFi

The token launching platforms may differ in their distribution models. For example, the two most popular models are Lottery and FCFS.

The lottery model gives the right to buy tokens in random mode, but from among those users who have been registered in the project and admitted to the allocation. While the FCFS model gives the right to buy early crypto startup tokens to all participants who are registered on a particular platform, allocation will go to those who are the first to buy them. It is also noteworthy that many platforms set their own rules for participation in tokensales, so allocation models can be based on hybrid principles and other criteria. A good example of this would be proportional token allocation, where participants are calculated based on the user’s balance or the amount of deposit made.

Against the background of the project launch and listing of coins on crypto exchanges, their value can grow significantly. Therefore, participation in the presale can open the opportunity to earn good money on early investments in cryptocurrency.

Why do crypto startups owners do this? Because a good amount of money is required to further develop such projects. Giving investors the opportunity to enter a project at an early stage is a win-win fundraising scenario that gives project owners enough money to continue their work, and gives investors the opportunity to reap potentially huge rewards.

Another reason to participate in presales and tokensales is the opportunity to receive exclusive bonuses. For example, some ecosystems or platforms incentivize investors with additional privileges, awarding more tokens. This approach makes presales more effective and attractive.

But it is also worth remembering that tokensales and presales are associated with some risks, so you should carefully analyze the projects you want to join. In this case, services such as CryptoTotem can help, thanks to which users save a significant amount of time and personal resources on detailed research and identification of the advantages of each blockchain project.