How Does ICO Pre Sale Work? A Guide you Should Never Miss!

ICO presale

Every startup with a dream of initiating a crypto business is mostly choosing crypto crowdfunding to collect funds for upgrading their business. This greater popularity for crypto crowdfunding is due to the omission of central authorities than traditional crowdfunding practices like IPO. Initial coin offerings, security token offerings, initial exchange offerings, and initial farm offerings are some of the prominent crypto crowdfunding models mostly adopted by booming startups. 

Speaking of an ICO, a newly created token will be sold to a set of investors, and funds are raised in return. Within this token sale process, there will be no intermediaries or middlemen involved. Hence, ICO has become the most preferred by newly emerging startups. Basically, an ICO takes place in two stages i.e. ICO presale and ICO token sale. 

In this article, we shall discuss everything about pre-sale ICO, the working of an ICO pre-sale, the advantages of a pre-ICO token sale, etc. Let us kick off this article with…

What is a Pre-sale ICO?

An ICO pre-sale is a token sale event that happens just before the main ICO crowd sale. During this, a portion of the crypto tokens will be sold to reputed investors at a discounted price. The main motto behind conducting an ICO token presale is to market the ICO project and for attracting potential investors. 

Pre-sale ICO takes place through the ICO website just months before the main sale by marketing the project on various crypto-based platforms. This ICO pre-sale utilizes individual smart contracts as the funds raised in pre-ICO and ICO should not be mixed. With this ICO token presale, both the startups and investors can get profited. For instance, Telegram, a popular social media app has raised more than $1.8 million in the presale itself. Hence, as a startup, conducting a pre-sale ICO is highly mandatory for promoting the ICO project. To conduct a pre-sale ICO, you have to create your own ICO platform promptly for generating hefty funds for your business.

Factors to Consider Before an ICO Presale

The core parameters to be considered before initiating a pre-sale ICO were,

Crypto Token Development

A crypto token that is developed for ICO fundraising is referred to as a utility token. These utility tokens can be created with any of the fungible token standards like ERC20, TRC20, and BEP20. The utility tokens issued during an ICO can be used for any crypto-related activities like trading, staking, lending, etc. Not only these, but the investors can also access the products or services offered by the ICO startup.

ICO Website Creation

ICO website is the interface or platform where the tokens will be sold. Basically, an ICO website will come with all the features and services offered by the particular company. An effective ICO website can be developed in two ideal ways. One is development from scratch and the other is using the ICO script. Developing an ICO website from scratch with the new UI design will be a complex process. On the other hand, you can approach the best ICO script provider like Icoclone for the best results. Our ICO Script comes with both an admin and user dashboard that helps in attracting numerous investors.

ICO Marketing

Once the ICO project is decided, that particular project should be promoted through various marketing strategies in different crypto-based communities. The newly created ICO tokens will be sold only if it is notified to the potential investors. Additionally, the startup should keep a note on the ICO whitepaper as it plays a major role in attracting a wide range of investors.

Even after knowing these factors, many crypto folks are confused on knowing the working of the ICO pre-sale platform. Here included the following.

How Does an ICO Pre-Sale Work?

  • Individual smart contracts are created for both ICO and pre-ICO for auditing the funds easily.
  • Once the smart contract for pre-sale ICO is created, the starting date and the token’s name will be promoted in all crypto-based platforms by adopting various marketing practices like banner creation, social media marketing, forum commenting, etc. 
  • After promoting the ICO project, the ICO token sale will be initiated and the tokens will be issued only to a limited set of potential investors. 
  • The investors can buy a minimal quantity of tokens during the pre-sale ICO and the remaining will be available during the main ICO crowd sale.
  • The new tokens bought at a discounted price will be stored in the crypto wallet by the investors whereas the startups will utilize the funds for promoting the ICO token sale platform.

This is what happens during a pre-ICO token sale. Even after the pre-sale ICO, many investors are unaware of the investment procedure. Don’t worry! We’re here to help you.

How to Participate in an ICO Pre-sale?

As an investor, you have to be aware of the crypto market and active in all crypto communities like Cointelegraph, and medium publications based on crypto. Many startups will list their new ICO projects and their presale date on those platforms. The primary step you have to do is to analyze the whitepaper. Each and every single detail of an ICO project will be illustrated in a whitepaper. By diving through the whitepaper, you can make a decision on which project you are going to invest in. Once after choosing the project, you can participate in their ICO token presale and collect a part of the crypto tokens at a minimal price. Only limited tokens will be available during the presale. The remaining tokens can be bought during the ICO crowd sale event. This is how you can make participation in an ideal pre-sale ICO platform.

Why Should an Investor Participate in the ICO Presale?

There are various advantages that come along with buying tokens in the ICO presale. The core benefit for an investor participating in an ICO pre-sale is buying the tokens at a discounted price. For instance, If an ICO token is created for a value of $1, based on the ICO owner’s decision, the tokens can be bought for 0.75 or even $0.50 in the pre-ICO token sale. Additionally, many bonus cards, airdrop tokens, and premium memberships for some services will be offered by the startup. Hence, more money can be saved by participating in an ICO presale.

For a startup,

  • A token purchase is assured. Sometimes, ICO crowd sales will happen at a faster pace especially if the cryptocurrency market is in a bull run which means ICO can hit the fiat hard cap through appreciation of the crypto invested.
  • In some cases, huge funds can be raised in the presale contrasted with Crowdsale since presale is normally gone for greater financial specialists.
  • Possibility of generating quick return whether tokens issued at concession during ICO token presale can be sold at the original cost when the actual ICO token sale starts.

As a reputed ICO development company, we shall offer a list of some tips to make your presale more victorious.

Tips for a Successful Pre-ICO Launch

  • First, you should perform a complete market analysis and pick a pain point of the real world and come up with a great idea that offers a solution for it. 
  • Once the idea is fixed, develop a unique smart contract for creating a crypto token.
  • Choose a reputed blockchain like Ethereum, Tron, or BNB chain and pick a fungible token standard in any of these blockchains and create a crypto token accordingly.
  • Develop a feature-rich ICO website in a manner of attracting the worth and potential investors of the crypto space.
  • Run a pre-ICO token sale on your ICO website, collect funds, audit it, and maintain it carefully.
  • You can utilize the funds raised in pre-sale for further development of your ICO project.

To Close

By following all the above-mentioned information, your ICO pre-sale can be executed without any hassles. For creating an impressive ICO website, you should approach a reputed ICO Development Company that offers first-class ICO scripts in the crypto space for the best results. In that regard, Icoclone offers a premium ICO script that comes with both the admin and user dashboard that will be compatible with both startups and investors. Not only this, you’ll get a new crypto token, wallet, and a unique ICO website as the end product of buying our ICO script.

Not only the ICO script but also offer all crypto-based development services like crypto token creation, NFT creation, smart contract development, STO script, IEO launchpad development, metaverse token development, etc. Our developers will be always ready to help you with these services at any time. We have a first-class support team that will even revise your queries even after the project deployment. Hence, get a feature-rich ICO script from Icoclone and initiate your ICO website creation immediately!!

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