How is the Presale different from the Crowdsale?

The world of cryptocurrency ICOs has been rapidly developing these days. As it seems, these ICOs resulted in benefits and profits on the Ethereum network. ICOs have become a very popular way to fund the cryptocurrency projects. Nowadays, the ICOs appear to be launching a so-called presale phase, before the start of the crowdsale.

We often see the words Presale and Crowdsale during introduction of a blockchain project. That’s why it is important to separate and explain these terms. In this text, you will discover what the presale is, what it contains, and how it differs from the crowdsale.

What is presale? Why do we have it?

The presale is a way of how companies show to the public “Hey, we are in! Join us”. A presale or a pre-ICO is a term that refers to the process that takes place before the crowdsale begins. It usually allows the investors to buy tokens before the crowdsale starts. Moreover, it is a good way for the companies to raise money for their blockchain project.

This token sale event usually has separate smart contracts from the main — crowdsale event. It generally targets larger investors as well as some private investors, depending on how the token sale is structured.

The presale is a new phenomenon that has positive impact on the ICOs. The main idea of a presale is to provide discount. Companies do not raise a lot of funds but this is an opportunity for them to head up the tokens they are trying to sell. The investors that participate in the presale often get cheaper prices per coin as well as a higher bonus amount. Therefore, those people sometimes get additional bonuses such as some free access, a bonus card, etc.

That’s why we have the presale phase and why it has a good influence on the ICOs. This event benefits both the companies and the investors as well.

On the other side, we have the crowdsale

The crowdsale is the core of an ICO project. It is an event where a company with cryptocurrency project sells part of its tokens in exchange for money. It is a process of raising funds where people give small investments in order to create a larger investments.

Anyone can participate in the crowdsale. You will just have to create an account on the company’s page, put the deposit you want to invest in their wallet address, and enjoy. As long as you follow the instructions, you can invest there and be recognized as an investor.

Crowdsale has its own benefits. First of all, when you join some project, you support and believe in that project, and by investing, you receive tokens which you can sell later. There are also different bonuses and awards you get when you participate in a crowdsale.

These are some differences between the presale and the crowdsale. As we can see, both of these phases are unique and have their own characteristics and advantages. Despite the well-known crowdsale event, now we have the presale which is a good way of starting an ICO project.

As it looks, the presale matters for the investors. It is a guide of how the official crowdsale will be carried out. That’s why it is better to have a presale before the crowdsale begins. We believe that the presale benefits an ICO project and that all ICOs should include this event in their plan.

For a presale to be successful, the companies have to have finished product that investors can try out, good team that can execute their goal, professional marketing campaign, strong cyber security, etc. We believe that we have everything that is important for having a successful presale.

We took our first step because our presale has already started. Check out!

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How is the Presale different from the Crowdsale? was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.