Crypto Terms: Letter P

What is Pre-IDO?

Pre-IDO - token offering that happens before the initial dex offering (IDO) takes place.
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Let's find out Pre-IDO meaning, definition in crypto, what is Pre-IDO, and all other detailed facts.

Token offerings that take place before the initial dex offering (IDO) are referred to as pre-IDO. It's a unique concept that allows DeFi users to learn about new and upcoming cryptocurrency initiatives. Though a pre-IDO also allows DeFi projects to expand their fundraising capacity regardless of market fluctuations.

While IDOs are one option to collect cash for a project, the price of the tokens is heavily influenced by market conditions. Developers can raise funding via a pre-IDO regardless of market instability

The tokens supplied in pre-IDOs are future unlocked tokens, which means that all tokens have a lockup time set before the pre-launch of IDO. When the lockup period finishes, each token is unlocked.

Pre-IDO, in comparison to IDO, provides more democratized investor access and higher pricing advantage. Besides, there is a lockup period, and investors gain immediate liquidity after the stock is listed.

Advantages of Pre-IDOs

Through a pre-IDO, individual investors can invest and buy project tokens at a private investor rate. That’s because they are exposed to VC-style funding events that are usually available only to VC firms and institutional investors that have millions of dollars. A regular user in a VC-style funding event enjoys a price advantage and a first-mover advantage over those who buy tokens during the public IDO.

The concept of pre-IDO is also beneficial to developers. Hosting a pre-IDO allows projects to obtain funding and expand their capacity. Besides, pre-IDO enables developers to get sufficient financing for their projects regardless of market fluctuations. This allows them to concentrate entirely on product development.