Pre-Sale: Defined in CryptoCurrency
A pre-sale is defined as a point in time where investors can put money into a new cryptocurrency project before it becomes publicly available. The benefits for investors are lower prices and bonus coins and the team behind the project get funding to support development and growth.
You may already know that an Initial Coin Offering (ICO) is when a new cryptocurrency idea becomes available for the public to invest in. A pre-sale always comes before an ICO with better prices and a lower fundraising target. Some projects need a pre-sale to support the costs of doing a big ICO.
Because a pre-sale offers better opportunities to make money than an ICO, more crypto projects are raising all the money they need in their pre-sales. Telegram, the private chat application, was supposed to have a very large ICO but instead they raised a massive $1.7 billion dollars in their pre-sale and skipped the ICO.
The downside to a pre-sale is that investors often sell their crypto on exchanges as soon as they are available for a big profit.
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