A presale is a tokensale that is held before the crowdsale and usually after a privatesale. Presales are usually announced and promoted on the the website and may be advertised but not as aggressively as a crowdsale. A presale gives participants the chance to get tokens at a higher discount or bonus compared to a crowdsale. Various bonuses or discounts may be offered based on how early you contribute and how large the contribution amount is.
Presales have some characteristics that differentiate it from a crowdsale and privatesale. We can group these characteristics into Pros and Cons:
Some positives or pros of participating in a presale are:
- Potentially greater discounts on tokens compared to crowdsale.
- Token purchase is assured. Sometimes the crowdsale is cancelled specially if the cryptocurrency market is in a bullrun which means tokensales hit the fiat hardcap thru appreciation of crypto invested.
- Possibility of purchasing more tokens compared to crowdsale since presale is usually aimed at bigger investors.
- Possibility of quick return if tokens bought at discount are sold at crowdsale price when token trading begins.
Presale negatives or cons
- Typically higher minimum contribution amount compared to crowdsale.
- Higher risk due to immature product or company. Some products are very early in their development phase and use funds acquired during presale to finance further development of their Minimum Viable Product (MVP) or to help finance promotion for crowdsale.
- Risk of cryptocurrency appreciation devaluing your tokens than if you would just held cryptocurrency or invested during crowdsale.
- General lack of liquidity of tokens while awaiting token trading
- Lesser ability to gauge success of tokensale based on success of presale.
- Less tokens usually available as a whole to presale means popular tokensales get sold out fast.