What is Public Sale?
Let's find out Public Sale meaning, definition in crypto, what is Public Sale, and all other detailed facts.
A Public Sale, also referred to as a crowd sale, is a term used in the crypto sector which refers to the process of introducing a new coin or token to the public prior to listing it on a cryptocurrency exchange. It’s the last phase of initial coin offering (ICO) which is a popular method of raising funds for crypto projects where the blockchain companies sell coins or tokens, sometimes at lower prices, and use the crowdfunded capital to launch the project.
ICOs are becoming increasingly popular within the crypto sector and can be considered the next-generation method of fundraising.
In order to fully understand what a public sale is, let’s take a look at how an initial coin offering progresses.
Before delving deeper, it’s important to keep in mind that the majority of ICO sales have been happening on the Ethereum blockchain that’s based on a P2P standard. This platform makes use of smart contracts to collect ETH and give out the project’s new coin or token.
An ICO starts with a private sale. In order to participate in it, you have to be chosen by the project’s management. The criteria can vary from project to project, but, in general, the participants must align with the project’s vision and goals. Remember that a private sale is when you’ll be able to get the best price for the new cryptocurrency.
The next step is the pre-sale. It’s a sort of middle-ground since the buyers will be able to get a better price for the cryptocurrency than the public sale without the private sale’s risks. It’s especially successful when the management is trying to raise funds for the project’s marketing efforts before officially launching it.
Last but not least is the public sale. It’s often considered to be the most important stage. Therefore, the funds from the previous steps are usually used to initiate marketing campaigns in order to attract a large number of investors. Some of the benefits of a public sale are higher liquidity due to a smaller trading time window and lower volatility that could possibly influence the price of the cryptocurrency. Also, it’s easier to predict the outcome based on the two previous sales.
The private sale and the pre-sale come out on top in regards to higher discounts as well as further and larger bonus rewards. While there are the least amount of risks attached to the public sale, the number of discounts and bonuses is also the smallest.
There are a few downsides to partaking only in the public sale including a lower maximum cap per investor or a token dump. Additionally, the crowd sale could be canceled if all of the coins or tokens are sold.
If you’d like to acquire a new coin or token by participating in one of these phases, follow these steps:
- Simply trade your fiat currency into a cryptocurrency of your choice (Bitcoin or Ethereum are generally a good option);
- Send the cryptocurrency to your blockchain wallet;
- Partake in either ICO’s pre-sale or public sale.
After following these simple steps, the new cryptocurrency should be in your hands.
Please keep in mind that, in this case, the private sale is not included as the participants are determined by the project’s management.