You’ve heard of the term where people always say being early is key!
Have you listened to the shills and wondered why you still ended up losing money?
Here’s why:
You don’t know what you’re apeing into.
1/ Allow me to explain what are they and what should be considered before apeing into them!
I’ll explain what are they, different types of presales with examples, pros vs cons and what I usually do!
2/ Presales are a form of fundraising conducted by projects/protocols to raise funds for the team.
They give you tokens in exchange for assets/cash that the protocol will use to fund its expenses (eg marketing, salaries, development etc.)
3/ There’s a few different types of sales before a token goes live in the market:
• Pre-seed (Highest risk & return)
• Friends & Fam (insidoor)
• Seed (High risk & return)
• Private presale (insidoor v2)
• Public presale (retail)
• Series ABC (lower risk & returns)
4/ For this thread, we’ll focus on public presales specifically which are more focused towards retail (also more degen stuff).
What are the different types of public presales?
5/ Fixed Price No Limit • Fixed amount of tokens to be sold at usually a fixed price • Can raise $100 or $1M, they will still launch either ways, most usually implement a softcap • Mostly trashy cashgrabs are found in this category
6/ Fixed Price Soft+Hard Cap • Min & max target of money to be hit • If min isn’t hit, presale is off & everyone gets refunded • Presale is closed when either min isn’t hit or if max is filled • Usually at fixed price w/ fixed amount of tokens • Most of
7/ Overflow • No hardcap, but fixed amount to be raised • Tokens allocated based on your % of the pool of raised funds • More $ you commit, more tokens you’d get and you get back whatever isn’t spent •
loves overflow, recently
did the same style
8/ NFTs + Airdrop • Raises cash by selling NFTs which may give you a future airdrop • Utilized by NFT projects and/or some Solidly forks • NFTs with use cases are a good sign, examples being
&
which can also be staked to earn platform fees / royalties
9/ Platform IDOs • Raises on platforms which may/may not require you to hold their tokens to get an allocation • Pinksale/Gempad doesn’t require you to hold a tokens, but takes a % of tokens/funds raised from the team
10/ •@impossiblefi
allows both token holders and non holders to participate, with benefits such as better prices / more allocations / less competition
i think this post is getting too long, will continue on the next post