Presale vs. ICO

[mummybtc]

Pre-sale is very good for investors becuase of the discount one get but there is also risk here, because you tie down your money for long period and you are betting that the project is going to be successful if not it may hurt

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[Anneai]

What are some ICOs with super smart and successful presales?

I have been reading up on this recently - and found Civic was certainly successful, with around $33 million in funds raised in the Pre-Sale - however (again from what I have read) they ended up over-selling tokens, and actually had to recall some - so definitely a successful pre-sale, but perhaps not super smart, as having to recall anything is not a desirable outcome in most cases.

[Anneai]

From what I've been reading about Pre-Sales, they are primarily designed to get a financial influx ahead of an ICO - to cover costs like hiring additional staff, covering the costs of getting the ICO ready. Some ICO's with Pre-Sales have been run really well, while others have had their challenges. One of the big problems that some projects faced when running a Pre-Sale prior to the ICO, is the Pre-sale price of tokens is often significantly cheaper - and a lot of projects don't enforce any restrictions on when those initial tokens can be sold.

So what has happened with some of these situations, is the early investors who got in at a discount, then sold their tokens when the tokens initially list - generally at a price higher than they paid. This is seen as a safe and guaranteed return on their money without really risking market volatility. This is a reward for early investors, but can have a negative effect on the price of the token once it hits exchanges in the early stages. It's never a good look for the price of something to tank once it's available to the public.

It's an interesting topic and there's so far been a lot of different variants attempted, with varying levels of success. ICO's like Canya and INS have been run intelligently to prevent this kind of dump of tokens early, in that they offer significant rewards for those who buy early, and hold, by using periodic airdrops to those wallets found to still contain coins from the ICO or Pre-Sale phase. Free tokens for hodling is a fairly lucrative incentive to hold after all.

[johnyespapa]

Most of the pre-sales of these projects will get investor's higher risk of losing their investment if the sale doesnt meet its goal,the advantage of this the tokens are more cheap than Pre-ICO sales.

Pre-ICO will give less risk to the investors to lose their investment,advantages of this they will get tokens cheaper than the usual price in ICO.
ICO- More investors will invest here because the pre-sales and pre-ICO were successful ,giving them lesser chance to lose their money but the tokens are sold in its usual price.

[potraviny]

Main difference is just the price, you usually get more of the alt coins in the pre-sale / more bonuses than in the ICO.

[frmracc]

The benefits that you get if you buy on pre-sale is you can get a big bonus. If you wave invest with big amount, you can pm the dev and i think you can get more bonuses. If the project is really good, many people will join the pre-sale and even reach the hardcap in a minute. Like insurepal, their open crowdsale ICO is only take 30seconds.

[madushanperis11]

As far as I understand, both of them offer the chance to community to purchase some coins before it is released. Normally pre-sales offer higher benefits like some percentage of bonus to the amount you buy and the unit price also might be lower. And when it comes to Initial Coin Offering, the bonus amount might be less or not available anymore and price might be little bit high. Anyway the consideration is the risk. It is very high risk to invest during pre-sales as the project is not well known and might end up with scam.

[EvilKingfisher55]

They are just the same I think. Pre sale is just a marketing strategy to get more investors by giving discounts and privileges. The risk would be greater on Pre-sale than to the actual ICO.

[oiskipoiskicrypto]

Usually the only difference is the fact that you get more for your money in a pre-sale.

People might avoid a pre-sale because they want the project to grow before investing, if the ICO has a successful pre-sale and is growing it is a safer investment.

[Pom_bensin]

presale and ico are combinations in the success of a project. A good ico usually will include presale at the time of sale to get a good response from investors and be assured at the time of sale ico. so I think it's a good merger.

[valnd]

In pre-sale they look to rise some funds from mostly accredited investors. In presale the contribution is higher and they rise higher funds from a few people. ICO or main sale or crowd sale is for the public as longer as their country is not restricted. you can join and most times a kyc is required.

[jakaKak]

Hey folks,

i am wondering what are the differences between presale we see that often and an ICO. why do companies run a presale mostly with higher benefits compared to the following ICO? do investors have to stick to some kind of conditions afterwards? (hold at least for x month?) i dont assume that because ppl sometimes gather, group up to collect the minimum needed in a certain presale and participate. so what is so special about presale?

The only difference is, that devs offer big discount for presale investments but if they choose to make too big of a bonus, it can backfire since early investors can dump the coin after ICO.

[Cryptogiji]

The main difference is the price. You get more for your investment in the pre-sale.

People might not go for the Pre-sale because they fear the project might not have the support, after a successful Pre-sale they are usually more well known and have more adopters. The reason that the startup does the pre-sale is to raise some capital so they can push their ICO to become more successful.

Be careful with Pre-sales, as some of the investors are pure speculators and will dump the coin as soon as it hits exchange to get profit, they don't always believe in the product, but just invest because they got a very nice bonus.

[emirkalyoncu]

Ofcourse presale is way more profitable against ICO because presale bonuses are much more than ICO but the money your risking is also bigger in presales.But if you believe the coin just invest your money on presale it is better

[zeze18]

the special thing is the price of the coins is much cheaper but the risk is also higher because in presale not many people joined into the project and maybe some of us choosing the altscoin based on how many people joined the project

[gringoprivelege]

I honestly think presale is not very good for a project, because you are giving out a large amount of value of token out. We Token should hold integrity.

[coinnumber]

Buying coin at the pre-sale stage is very cheap and there will be more interest compare to those who buy in ICO but buying coin at the pre-sale stage is a high risk because the project may clash which will lead to the investors losing their funds. Apart from that I think the advantage of pre-sale is much than the disadvantages besides business is all about risk most especially when it comes to online cryptocurrency matter.  And at the ICO you may be surprised the price will be times 4 of the pre-sale that's advantage already not to talk of when it gets to market cap.

[seek4dream]

Hey folks,

i am wondering what are the differences between presale we see that often and an ICO. why do companies run a presale mostly with higher benefits compared to the following ICO? do investors have to stick to some kind of conditions afterwards? (hold at least for x month?) i dont assume that because ppl sometimes gather, group up to collect the minimum needed in a certain presale and participate. so what is so special about presale?

To separate token sale into pre-ICO and ICO gives the team opportunity to raise more money.
Some times the ICO is following right after the pre-ICO, there is definitely no reason to make much bonus for pre-ICO participants.

[sazon84]

Despite the high risk, I like to participate in pre-sale.  Usually, early participants get bonuses or buy coins at a good price.  And for a pre-sale team, this is a way to check if their advertising channels work well.

[Pain Packer]

Pre-sale is like testing the waters or more like the appetizer before the main course. It is like building the hype before the ICO so that ICO can sell mroe tokens. Buying in pre-sale gives the early investors some bonus like in NTOK. Visit https://tokensale.ntok.io/ for more info!