Crypto Terms: Letter P

What is Pre-Sale?

Pre-Sale - the sale of a cryptocurrency before its official public launch.
1 minute

Let's find out Pre-Sale meaning, definition in crypto, what is Pre-Sale, and all other detailed facts.

Pre-sale is the practice of putting a cryptocurrency up for sale ahead of the initial coin offering (ICO). During the pre-sale, the tokens are sold to interested investors and other relevant parties.

A pre-sale strategy can be beneficial to both the developers of the cryptocurrency and the investors and it helps ensure the success of the currency ahead of its launch.

The developers can receive the funds needed to complete the project. The investors taking part in the pre-sale obtain altcoins that they can add to their portfolio with the expectation that their value will increase over time.

A pre-sale can also be organized as a PR campaign to boost the marketing for the ICO. This is a strategy done with the intent to increase the asset price soon after its public launch.

There are some risks to holding a pre-sale. If the project fails after its launch or the developers fail to deliver the final product, investors may lose their money on worthless assets. Furthermore, the altcoin scene is highly competitive so it can be hard to ensure that the value of the new coin will stand out in the market.

Developers also have to be mindful of the investors purchasing the asset during the pre-sale as their goal may be solely to sell it soon after the launch at favorable prices and make a significant personal profit. If investors massively dump new cryptocurrency coins soon after the ICO, it can negatively impact the market reputation of the assets and its developers.