The essence of all crypto presales is to allow investors to buy a project token at a fixed price before it is placed on centralized exchanges or DEX. Participation in tokensales involves both risks and potentially large rewards.
A key factor in tokensales is allocation
Allocation is a special term for the distribution of limited resources, in this case tokens.
There is general tokensale allocation, which determines how many tokens will be allocated for sale. There is also a buyer allocation, which determines how many tokens each participant will be able to purchase.
If the total allocation is, for example, 1000 tokens, then this amount will be distributed among all participants. There may also be a minimum or maximum allocation for each participant. For example, if the minimum allocation is $50 and the maximum allocation is $500, then each participant will be able to buy tokens for any amount from $50 to $500.
Each project independently determines the procedure and conditions for sales participation. Projects also independently determine the allocation, it can be both fixed for each user and individual depending on additional factors.
If the tokens are placed by a sufficiently popular and promising project, the demand during the tokensale greatly exceeds the supply. Not everyone will be able to participate, so after the listing, the price of the coin often exceeds the price during the tokensale by several times.
What is IDO
Initial DEX offering (IDO) is one of the most effective ways to raise funds for cryptocurrency startups. This type of crowdsale is conducted on decentralized trading platforms and involves liquidity pools, thanks to which traders can easily and quickly buy new tokens.
Liquidity pools are pairs of digital currencies and stablecoins, such as USDT or ETH. With these mechanisms, investors are able to quickly switch between crypto assets and stablecoins. And since the volatility of stablecoins is very low, this approach significantly reduces the risk of investment losses in the crypto market.
Where to buy presale crypto tokens
In the crypto space there are different platforms where one can buy tokens of early projects. But let's look at a popular way on the example of IDO Launchpads.
IDO Launchpads are specialized platforms for launching tokens of crypto projects. At the same time, these platforms are a user interface with a public presale crypto list, which can be used by any willing investor or trader.
The key aspects of a successful IDO tokensale are the quality and marketing of the blockchain startup. However, the Initial DEX Offering model itself implies a higher chance of success. Moreover, marketing more often than not surpasses the utility of the crypto project or its degree of readiness. Advertising creates the visibility of all the components, but these are the exceptions.
So, if you have a ready blockchain solution at the MVP stage and it is able to close the main needs of users, its IDO will be very successful. You can find and select the highest quality and cost-effective project to participate in IDO with the help of specialized services, such as CryptoTotem.
