The term “ICO” stands for “Initial Coin Offering.” ICOs, particularly for bitcoin firms, is rapidly becoming a dominating type of start-up funding. An entrepreneur generates funds in an initial coin offering (ICO) by selling a newly anointed cryptographic token to the general public. Typically, the token is launched on a specialized exchange shortly after the ICO, creating a secondary market. ICOs have become the most common route of funding for blockchain-based start-ups and more than $30 billion has been obtained through ICOs to date.
An ICO pre-sale is a private seller stage that occurs prior to the ICO/crowd sale. It usually happens a few months before the ICO round. At this moment, only significant investors, especially HNIs, are being sought. The minimal involvement requirement is significantly greater, and not everyone will be able to participate in this round. However, the overall investment objectives for a pre-ICO are lower than those for an ICO round.
What actions should be done after an ICO presale period? Holding or selling it?
When purchasing in ICOs, there is no certainty that an investor will not become a victim of a scam. Investors should do the following to avoid ICO purchasing scams:
- Ascertain that construction companies can clearly explain their objectives. Successful ICOs often have simple, intelligible whitepapers with specific, measurable goals.
- Learn about the developers. Investors should expect complete openness from a company establishing an ICO.
- Look for the ICO’s legal user agreement. Because outside authorities do not normally monitor this market, it is up to a participant to confirm that every ICO is genuine.
Advantages of ICO Presale
There are special offers associated with pre-ICO holding, making it an appealing alternative for major investors because they will be able to economically exist even during the crowd sale stage. As a result, if the project is strong, these pre-ICO events reward both construction companies and large participating investors.
Other advantages include
- Team receiving instant money
- media coverage of developing an appropriate stage project
- Attracting and bringing many prospective investors
- Hiring people
- Promoting the coin
and so on are all part of the ICO process.
Pre-Sale period of Holding
While writing this article, one thing became clear to me that the token sales are the new seeds. Initial steps will increasingly struggle to raise equity-based finance and will attempt to fit themselves into a token sale structure and to hold them But this is perfectly OK.
Ultimately, this amounts to the acceptance of cryptocurrencies or ICO as the financial world’s glue. There is plenty of room for several presale holdings, even within the same industry, and we may also expect market shakeouts and adjustments in the coming years. However, I believe that over time, angel financing will shift toward token investment. And holding is much better than selling.
As a result, pre-ICOs, like ICOs, have a high risk-reward combination. However, not all pre-ICOs are created equal. The plan is to conduct an extensive studies and discover hidden gems during the pre-ICO period. Because the fight among VCs to conquer this space is less intense presently, it is virtually a blue ocean in which even new entrants have established their credibility.