Presale in the ICO Process
ICO development can be expensive, and launching a full scale project is really demanding when it comes to resources - you have to gather a team, build the whole IT background, take care of the legal issues and manage a big scale promotion to reach the investors. That’s why many companies decide to support their offering at the very beginning with a presale, or pre-ICO.
What is presale?
An ICO Presale is like an initial, small scale round of investment. It is often private, and means selling initial tokens to a closed group of investors with a considerable discount (up to 50%).
On one hand, it’s a way to gather found for the full scale campaign for your ICO and improve your cash flow, but on the other hand, it’s a way to test the market’s attitude and is a low-cost check if investors will be interested in acquiring your tokens.
>> Preparing Your Company For ICO
Technical details of Pre-ICO
To launch Pre-ICO, you obviously need to have a finished and audited Smart Contract. The presales usually start no earlier than one month before the main offering.
The best choice in most of the cases is to have a separate smart contract to sell tokens in the presale. It draws a clear line between this and the next stage, and will be useful in the future.
In the end, a presale is a small scale Initial Coin Offering. We mentioned that you can treat it as a test, but it’s a test that you need to be 100% prepared for - any failure during this stage will undermine your credibility, and can sink your project.
Want to launch your own ICO?
An experienced blockchain software house is ready to help. DIscuss your idea with the Look4App team.
- How To Launch An ICO Project - Technical Details On The Process
- 3 Traps That Can Sink Your ICO - and How to Avoid Them
- Working on an ICO with a Software House - 6 Insights on Blockchain Development Outsourcing
- ICO Software - How To Build an App for your ICO?