How Powerful is a Crypto ICO Presale?
As an avid startup, are you striving for success in your crypto business? In that sense, Crypto Crowdfunding is the ideal approach used by enthusiastic startups and entrepreneurs to raise funds for their crypto businesses. In this crypto crowdfunding, One of the effective crowdfunding methods which made a huge impact among startups is ICO, Initial Coin Offering.
In ICOs, utility tokens are issued through the ICO website for a certain period in the name of the crypto token crowd sale event. Here as an aspiring startup, you will have a question: Before this token sale event, will I be able to generate funds for my business expenses? Of course, you can raise funds from the investors before the crowd sale event through Crypto ICO Presale.
In the ICO token Pre-sale event, a small number of tokens are sold out to an exclusive set of investors before the public token sale. This is mainly done to seek the attention of potential investors for the upcoming ICO sale event. For startups, the token sale is a powerful start for ICOs.
So, In this blog, I will illustrate the concept of crypto ICO presale and its benefits, popular ICO presale projects, and the future of ICO in the crypto market.
Benefits of Crypto ICO Presale
As said earlier, after the ICO website is launched successfully, the very first stage of the ICO token sale takes place in the name of Presale ICO. In this pre-sale, the newly created tokens are sold out at a discounted rate only for a selected group of investors. Pre-sale ICO is very beneficial for both startups and investors. Let’s see elaborately about the benefits of Presale below.
For Startups:
- To Analyze the Demand for the Token
Crypto presale is conducted mainly to analyze investors’ demand for the newly created token. This helps the startups mint more tokens in the future while executing the public token sale event.
2. To Boost the Community Level
This presale helps startups to build their community base with a new pack of potential investors. Within a small number of trusted investors, the presale event is conducted securely.
3. Acts as a Testing Platform
As this sale event is done on a small level, any disputes or problems can be solved within a short span for investors’ convenience.
4. Satisfy the Expenses
In this presale event, the expenses for ICO website development, social media marketing, token promotion, and other operational costs can be satisfied before the public token sale.
5. To Seek Attention
This presale promotion is mostly done through social media that helps startups to seek attention from potential investors. And it also helps to promote the value of tokens in crowd sale events and the demand for the tokens during listing in the exchange.
For Investors
- Tokens at an Affordable Rate
In the presale, tokens are sold at a discount rate that helps investors to buy a huge number of tokens from startups.
2. High ROI
The ROI (return on investment) is high when investors purchase tokens in presale itself. For example, an investor who buys a token at an affordable rate will get a profit when the value of the token is increased while listed in the exchange.
So, these are the significant benefits of the presale of ICO for aspiring startups and potential entrepreneurs. To conduct the ICO token presale flawlessly, first, you need an ICO website with unique features, right? Don’t worry, it’s simple to launch your ICO website with an ICO script. Choose the best ICO script provider who fulfils your business needs and requirements. Launch your ICO and effectively raise your estimated funds.
Failed & Successful ICO Token Presale
In some cases, presale ICO has not resulted best for startups. The major reasons for ICO presale failure are listed below.
- Less transparency — As a startup, you have to provide your credentials on the ICO website in a very clear manner. If you fail to provide the proper credentials, investors will fear buying your tokens in the presale. This will lead your presale ICO to be a loss.
For example, DOGEkiller (DOGEki) was founded in 2022 and the presale event had become a huge loss. Because they failed to provide investors with proper credentials and pieces of information. Due to these reasons, investors fear buying their tokens, and the tokens are added to the dead coins list.
- Hacking and Theft — The presale ICO is a cage of hacking and theft, but this is not completely true. In some cases, the hacking of ICO websites is happening only because of inappropriate security features. So, build your ICO website with high-security features.
For example, In Phony Enigma Project Pre-Sale Launch, hackers stole about 500k. This happened because their ICO website is featured with less security.
- Poor Planning — As a potential startup, you need a proper roadmap and planning for your presale ICO. If you fail in this, then your presale will not be effective. Many ICO token pre-sales have failed due to a lack of planning. Swisscoin is a great example of this. Because they have not given the proper whitepaper and there was no information regarding the developers.
- Less Engagement with investors — Once you decide to launch your ICO, you must engage with your investors through various means like social media and blogs. You have to provide your investors with the latest updates. This ensures your investors trust your token presale event without any hesitation.
So, as an aspiring startup don’t follow in the footsteps of failed presale ICO events. These above-mentioned mistakes are committed by a startup that has lost in presale ICO. If you want to make your ICO token presale successful, completely avoid these mistakes.
In 2023, many presale ICO have succeeded by avoiding these above-mentioned mistakes. Examples of successful pre-sales of ICO in 2023 are Love Hate Inu (LHINU), Fight Out, C+Charge, RenQ Finance (RENQ), and more. Let’s see some of the crypto presales in detail and the reason behind their successful outcome.
Love Hate Inu (LHINU) Token
The love for meme coins is becoming higher among crypto investors because of the influence made by dogecoin. After dogecoin, many startups started to create their tokens with meme concepts. In that way now, Love Hate INU (LHINU) token’s presale has made a huge impact among investors.Create ERC20 tokens
During the first presale, LHINU tokens cost around $0.00085. The hard cap estimation of this presale event is $10,068,750. But, this ethereum based token has raised nearly 1.5 million funds in less than 48 hours in the presale event itself.
There is no doubt that it will become a successful token after Shiba INU and dogecoin in 2023. So, before launching your presale analyze the mindset of investors and the current trend in the crypto market.
Fight Out Token (FGHT)
Like Love Hate Inu (LHINU) Token, fight out is a P2E (Play-to-Earn) project that has collected up to $5.8 million in the Presale event itself. The token behind the Fight Out project is FGHT. Due to its unique features and clear Tokenomics, FGHT became a successful token and made a huge impact in the presale event of ICO.
Both the above-mentioned successful ICOs issued utility tokens to investors that have been created in the Ethereum blockchain. So, Create ERC20 tokens with unique features as per your needs and requirements for your ICO. If the token presale event is preplanned and launched with proper guidance, as a startup you can succeed in the crypto market with your newly created tokens.
Then, your Presale ICO will be a powerful start for launching your ICO. For launching your presale event, as a startup, you have to be clear about the legal consideration also. You should know about the relevant laws, and regulations that are followed. Next, we can see about the legal consideration.
Legal considerations of ICO token presale
ICO and its presale are legal to launch, but few countries are seeking to frame rules and regulations to launch ICO token presale. In France, the government tends to frame guidance and regulations that should be followed while launching an ICO token presale to avoid hacking and theft.
If rules are framed in the future they will be based on the government’s existing policies and regulations. At present, even in high-developed countries like Germany and the UK, there are no such strict norms or regulations followed for launching ICO and executing new token presales. So, as a startup, you don’t need to worry about legal considerations for launching your token sale.
Future Outlook of Crypto ICO Presale
As said earlier, ICO presale is the foremost token sale event that benefits both investors and startups. Startups who are keen to raise funds for their project choose ICO presale events to reap high profits with a small number of tokens. Even though regulatory frameworks are created by many countries to launch ICO token presale, it will not highly impact the growth of ICO and the presale because investors are fascinated with buying new tokens.
Strong ecosystem levels are built through this crypto presale before the ICO launch. Even though many centralized methods have been introduced for fundraising, startups choose ICO and Crypto ICO presale, as this is one of the best ways to generate funds for the crypto business. Some changes or updates can be introduced in future ICO presale events, but there will always be scope for conducting ICO presales.
With the correct mix of innovative ideas, unique Tokenomics, and with proper planning, and an experienced team, Presale ICO will be effective in the future.
Final Words
I hope that you have gained a clear idea about the Crypto ICO presale. Within a short time and with affordable investment, an ICO presale will be effective for raising funds. As a startup don’t replicate the mistakes that have been made by the failed ICO presale event. With proper guidance and a development team, you can raise funds in a successful way with the ICO crowdfunding method. So, there is no doubt as the ICO presale will be a powerful start for startups.
