A crypto presale is a fundraising window that comes before a public token sale (often called an initial coin offering), when a blockchain startup offers in-development tokens to a limited audience. Access is typically restricted to strategic buyers, venture capital firms, or whitelisted participants, and presale terms can differ from the public round, including pricing discounts and lockups or vesting schedules.
To get into a token presale, you usually start by finding the project’s official sale page or a reputable launch platform, creating an account, and completing required identity checks if requested. Next, you set up a compatible self-custody wallet, fund it with the accepted contribution asset, and apply for whitelisting (if used). During the contribution window, you send funds to the official address or connect your wallet to the sale interface, then follow the project’s instructions for claiming tokens at distribution. After the presale ends, common next steps include a public sale (if any), token distribution or claim periods, exchange listing plans, and delivery of project milestones.
Whether it is good to buy in a presale depends on your risk tolerance and the project’s fundamentals. Benefits can include earlier access to a new network, the possibility of more favorable entry terms than later buyers, and closer alignment with a project’s early community. Risks can include project failure, scams or impersonation campaigns, limited liquidity due to lockups, unexpected delays in token distribution or listings, and regulatory uncertainty depending on the jurisdiction.
When joining token presales, consider basic operational security: an antidetect browser such as Multilogin can reduce fingerprinting, and using a proxy server adds an extra layer of privacy. Also verify you are using official project channels, double-check contract addresses and deposit destinations, avoid phishing links shared in direct messages, and store funds and claimed tokens in a hardware wallet when possible.
In presales, the biggest avoidable losses come from skipped verification steps—treat every address, link, and claim instruction as untrusted until you confirm it through official project disclosures.
- Clarify the token’s intended use and what rights, if any, holders receive.
- Identify the issuer and the legal entity responsible for the sale.
- Confirm the written sale terms cover eligibility, distribution mechanics, and transfer restrictions.
Based on the facts and circumstances, an offering of virtual coins or tokens can be a securities offering. If so, it must be registered with the Securities and Exchange Commission or conducted under a valid exemption. Before investing in an initial coin offering, determine whether the tokens are securities and whether the sellers registered the offering with the Securities and Exchange Commission. (Securities and Exchange Commission’s Investor Bulletin 07/2017)
Token Presales as a Speculative Bet
Because speculators pursue the lowest possible entry price, early rounds have become the centerpiece of many token launches. Ripio, for instance, raised about $31 million of its total $37 million during the presale period.
Selective access gives preferred buyers a head start at discounted pricing, which can disadvantage everyday investors. As offerings multiplied (they doubled between July and August 2017), traders targeted the spread between presale and public sale. Rapid selling by early buyers at the initial coin offering often creates short-term downward pressure on the token’s price.
The presale discount should match the risk borne by early backers; otherwise, investors have incentives to skip proper diligence and still capture near-riskless profits once the token trades on exchanges. – Sid Kalla, co-founder of the Turing Advisory Group ( 11/2017)
Noteworthy Early Token Sales
| Project | Presale Date | Presale Amount Raised | Presale Details | Initial Coin Offering/Public Sale Amount Raised | Notable Outcomes |
|---|---|---|---|---|---|
| Kik | August | $50 million | Invite-only presale; 488 billion Ethereum-based tokens sold at roughly a 30% discount to venture firms including Pantera Capital, Polychain Capital, and Blockchain Capital | $47.5 million | Public sale a month later included about 10,000 retail investors |
| June | $14.8 million | Full allocation sold out within 60 hours during the presale | Not applicable | Planned public sale was canceled after the goal was surpassed | |
| ICOBox | August | $8.3 million | Eight-day presale during Bitcoin volatility amid the Chinese initial coin offering ban | Not specified | Presale haul exceeded the post-sale intake; total raised was $14.5 million |
We are really excited—if you had told me back in January that we would sell $100 million of a new cryptocurrency by September, I wouldn’t have believed it. – Ted Livingston, chief executive officer at Kik (TechCrunch 09/2017)
As moves into the next phase of building its distributed venture capital platform that connects exceptional startups with leading experts and investors, we sincerely thank our supporters for helping us close the pre-sale in such strong fashion. – Jan Isakovic, chief executive officer of
Presale buyers can not always sell immediately. Many presale tokens are non-transferable until distribution, and projects often apply lockup periods, cliffs, or vesting schedules that release tokens gradually. In practice, selling typically becomes possible only after tokens are claimable and transferable and there is a liquid market, such as a decentralized exchange pool or a centralized exchange listing—subject to any contractual restrictions that still apply.
To find and evaluate legitimate presales, start with official project websites and verified social channels, established launch platforms, and long-running crypto communities where projects are discussed publicly. Focus on team transparency, clear token allocation and vesting details, smart-contract audit status, an active and accountable community presence, and a realistic roadmap that matches the project’s funding goals and delivery milestones.
