A Crowdsale is the the act of an ICO or STO offering tokens for sale to the general public in exchange for cryptocurrency or fiat money. Crowdsales can go by different names like Token Generation Event abbreviated as TGE, and Initial Token Offering (ITO). The crowdsale is more widely promoted and advertised than the presale as it is the main tokensale.
Crowdsales have some characteristics that differentiate it from presale and privatesale. We can group these characteristics into Pros and Cons:
- Less chance of increased crypto volatility affecting price of cryptocurrency used in crowdsale.
- Lower minimum participation amount compared to privatesale and presale.
- Typically less liquidity restrictions because tokens are not locked up as long as with Privatesale or Presale since Crowdsales are held nearer to token release or unlock date.
- Prospective participants can gauge success of a crowdsale by looking at performance of privatesale or presale.
- Less chance of increased crypto volatility affecting price of cryptocurrency used in Crowdsale.
- Usually less discount compared to Privatesale and Presale.
- Possibly lower maximum cap per person compared to presale or privatesale, very typical for crowdsales that are oversubscribed.
- Waiting for crowdsale sometimes means that it can be cancelled due to tokens selling out during presale. This is highly possible during a bull market if cryptocurrency contributed to the tokensale during presale appreciates and thus means tokensale hits its hardcap.
- Possibility of privatesale or presale buyers dumping tokens acquired at a discount on crowdsale buyers if tokens or bonuses are not locked.