Understanding the world of crypto may seem like walking through a minefield for both crypto novices and experienced investors. With new projects popping up on a daily basis, knowing which ones are worth your time can be an overwhelming chore. One opportunity that garners a lot of hype is the crypto presale. Presales allow you to get in on thrilling new ventures from the ground floor. Future rewards await you as the most engaged participant of all. Make no mistake, it’s very important to look at these opportunities with critical eyes and extreme caution. In this guide, we’ll dive into three of the most exciting crypto presales - Solaxy, SUBBD, and MIND of Pepe. We’re going to break down their promised benefits and risks to educate you to make smart risks with your investments.
Understanding Crypto Presales
Crypto presales represent an exciting time in a project’s life. They provide early backers the chance to snatch up tokens at a reduced price before those tokens are available on public exchanges. This early access can turn into massive returns, given that if the project is successful and its token appreciates in value after its official launch. In order to make the most of presales and, more importantly, avoid their pitfalls, it’s crucial to grasp the complicated world of presales.
What is a crypto presale?
A crypto presale is, as the name suggests, an early round of fundraising for a new cryptocurrency project. The project team will usually do a presale before launching their token. This makes it easier for them to attract private capital to support their development, marketing, and other business development activities necessary for a successful launch. During this phase, investors can purchase tokens directly from the project at a price typically lower than the anticipated listing price on exchanges. This initial significantly lower price is to incentivize early adopters. It further provides the project with the operational funding it requires through a robust capital stack to successfully launch. Think of it as an initial coin offering (ICO) but often with less regulatory oversight and greater potential for both high returns and significant losses.
How do crypto presales work?
In a typical crypto presale, the project development team decides on a specific amount they want to raise. Second, they set a corresponding hard cap on the token price and a hard cap on how long investors have to participate. Potential investors need to register ahead of time on the project’s website or an approved platform. After passing the required KYC (Know Your Customer) verification, they are able to freely buy tokens with accepted cryptocurrencies like ETH, USDT, or BNB. Depending on the presale, traditional payment methods including credit cards may be accepted.
The project team behind EverGrow uses the money raised in the presale to further develop the project and expand its community. They need to get past the official token launch on cryptocurrency exchanges. Make sure to read the project’s whitepaper or website carefully to understand the exact terms and conditions of the presale. You’ll be looking for information on vesting periods, which show how long it will take for tokens to be fully available, as well as bonus structures.
What happens once the crypto presale ends?
After the crypto presale ends, a number of important steps usually happen next. To begin, the project team will review the results of their presale, evaluating if they’ve met their fundraising targets or not. If they are, they move on to the second stage, which often includes getting the token listed on cryptocurrency exchanges.
The market launch phase includes time spent negotiating with desired exchanges to accept the project’s token for listing and publicly trading it on exchanges. Once the token is listed, its price will be up to the vagaries of the market’s supply-and-demand toilet bowl. Recent presale investors can now take advantage of this moment and cash in on their presale profits. They were incentivized to sell their tokens on the open market.
After listing, the price of the token may vary wildly, so it’s crucial to keep that in mind. If the project ends up being successful and buzz is created around the project, the price of the token would increase dramatically, benefiting those who got in early. If the project isn’t able to build up that momentum, it can quickly run into unforeseen dark clouds. This might lead to today’s token price crash and could thus trigger losses to investors. Further, you usually can’t trade tokens bought during presales on exchanges until the presale is over. This process can take several weeks, months, or even years, depending on the complexity of the project and whether or not it succeeds in raising the required funds.
Evaluating Crypto Presales
Investing in crypto presales is a gamble, but one with the potential for incredible rewards. Although the promise of big returns is tempting, it’s important to capitalize on these opportunities with a clear and consistent evaluation framework. A complete analysis of cost, benefit, and risk will provide the insight needed to prioritize your best projects and avoid wasting money on poor investments.
How does pricing work in crypto presales?
Initial pricing for cryptos goes in tiered rounds. Those who register early are usually the ones who get the best rates. This motivates them to make an early investment and support the first fundraising round for the project. The price of the token is expected to rise over the course of the presale in line with the increasing momentum and demand for the project. This sort of tiered pricing structure incentivizes early adopters. Simultaneously, it allows the project to maximize on burgeoning FOMO as the presale period draws to a close.
There are a number of variables that go into setting that starting price. These are the project’s total valuation, total supply of tokens, how much capital the project wants to raise and current market dynamics. Project teams often conduct extensive research and analysis to determine a fair and attractive price point that will appeal to potential investors while ensuring that the project is adequately funded.
Why should you invest in the best presale crypto?
Here are just a few of the many benefits that making smart presale crypto investments can provide. Perhaps the biggest lure is the opportunity to purchase tokens at a discount. You can get in on them before they go out to public exchanges. For the right project, this initial access might lead to outsized returns as there’s significant upside once the token launches and starts to appreciate. The potential to turn an investment of only $500 in a new presale project into $30K in no time at all! Take Filecoin, for instance, as an example of this amazing potential.
Furthermore, early investors often have the chance to participate in the project's governance and decision-making processes, giving them a voice in shaping the project's future. We give early buyers an opportunity to stake the cryptocurrency during the presale. This lets them receive a guaranteed 20% annual return on their investments, similar to how they profited from Filecoin.
It’s important to keep in mind that not all crypto presales are made the same. Thorough research and due diligence are essential to identify projects with strong fundamentals, innovative ideas, and a dedicated team capable of executing their vision. When real estate investors are lured into bad presale deals through fraud or bad planning, the result can be a devastating financial loss.
Are crypto presales risky?
Yes, crypto presales are inherently risky. The crypto industry is responsible for billions of dollars worth of scams and fraud each year, according to an FBI report. As every crypto investor knows, the overwhelming majority of new crypto projects collapse, or worse, turn out to be scams that defraud investors. Because the crypto space lacks regulatory oversight, these risks are magnified. Unfortunately, once the money has been misallocated to these fraudulent projects, recovering lost funds is an uphill battle.
After all, even good projects can go bad for many reasons, such as mismanagement, lack of innovative thought, or just plain bad luck. The price of a cryptocurrency can be extremely unpredictable, and even established projects with solid use cases often face double-digit percentage drops in value on any given day.
Investors need to be careful when considering crypto presales. Invest only what you can afford to lose! Engage in responsible marketplace exploration and do your due diligence. Keep your skepticism radar on high alert to avoid the dangers that lurk within this investing strategy.
Finding Promising Crypto Presales
Smart investors know that spotting promising crypto presales involves a more nuanced approach than just examining the marketing buzz. A thorough analysis of the project’s underlying technology, team, and potential in the market provides a strong basis for making smart investment choices. Here are some key factors to consider when evaluating crypto presales:
1. Whitepaper and the project’s goals
The whitepaper is the foundation of any crypto project. It describes the project’s vision, goals, technology and plan going forward. A good whitepaper will succinctly explain the problem that the project intends to address. Lastly, it introduces the solution they propose to that problem and explains what makes that solution special.
Do a deep dive into the whitepaper to determine whether the project makes sense and if it stands up to scrutiny. Look for easily digestible reviews of the technology. Next, look for a clear roadmap with achievable milestones and a clear understanding of the target market. Look closely at the team working on the project and their demonstrated track record within the appropriate disciplines.
2. Starting market capitalization
When considering a crypto presale, look closely at the initial market cap. This first potential market cap is an important measure to be a guiding hand in your evaluation. It depicts the combined market cap value of all the tokens. This value depends on what’s ultimately going to be in circulation when the token finally goes live on exchanges.
A high initial starting market cap might be a sign that the project is already overvalued and therefore has very little growth potential left. A low initial market capitalization is no guarantee, but it can suggest a project with a lot of upside ahead. It also entails a greater risk of failure.
It's essential to compare the project's starting market cap to similar projects in the same industry to assess its relative valuation. Look at the project’s growth potential, its competitive landscape, and its overall market opportunity when judging its initial market cap. Restrict a large portion of the supply to use for marketing, product development, and community building. Look for 40-50% combined to be confident that the project is going to be successful.
3. Broader market sentiment
Lastly, the general mood of the crypto world plays a big role in determining how successful a crypto presale will be. In times of market exuberance, investors are justifyingly excited to seek risky returns. They immediately throw their tokens into new projects, greatly inflating the prices of these tokens. In contrast, during periods of market weakness and downturns, investors focus the most on risk and loss aversion. This newfound paradigm shift presents additional challenges for new projects to experience any traction.
Get up to speed on what’s happening in the market today, how it’s evolving, and where it’s headed next. Pay attention to social media and other online platforms. Monitor crypto news and information sites to gauge the current market sentiment, as well as sentiment towards the specific project you’re researching.
Where to Discover and Purchase Crypto Presales
Whether you are a seasoned investor or just getting started, discovering the best crypto presales takes initiative. There are a number of resources that can aid you in identifying emerging projects and determining their applicability. It’s important to be careful and do your homework before investing in any presale.
Social media
Social media platforms such as Twitter, Telegram, and Discord provide a wealth of information and are essential tools for finding the best new crypto presales. After that, most projects do aggressive marketing on these platforms, chatting directly with potential investors, convincing them to invest and building their communities.
Follow reputable crypto influencers, industry experts, and project teams on social media to stay informed about the latest developments and upcoming presales. Keep an eye out for paid promotions and projects ready to hype themselves. Disclaimer: As with any investment, it’s crucial to do your own research and due diligence before participating in any presale.
Presale listing websites
A remarkable few crypto presale listing sites like CoinMarketCap provide details on currently active and forthcoming crypto presales. These platforms generally give you a breakdown of the project’s vision, team, tokenomics, and more.
Some well-known presale listing websites are ICO Drops, CoinGecko, CoinMarketCap. These platforms are great for finding new projects before anyone else does. Keep in mind that they provide no approvals or promises of success related to specific presales.
Crypto-based YouTube channels
Credible, crypto based YouTube channels can be an excellent resource to learn more about projects and get further analysis on which presales are worthwhile. Several YouTubers do deep dives on their projects and compare them against other projects, determining potential pros, cons and risks.
That said, beware of slanted or sponsored research. Look for platforms that can provide you nonpartisan and outside analysis. As always, conduct your own due diligence to form your own view.
Spotlight on Top Crypto Presales
Let's delve into three crypto presales currently generating buzz in the crypto community: Solaxy, SUBBD, and MIND of Pepe. We’ll take a look at their unique value propositions, prospective benefits and risks, and come away with a more informed and balanced perspective.
Solaxy (SOLX)
Solaxy is another exciting project looking to improve the Solana blockchain ecosystem, focusing on increasing speed, scalability, and future-readiness. The Solaxy presale is currently live and the tokens are selling out quicker than you can imagine. Solaxy turbocharges Solana, optimizing it to be faster and more scalable for the long-term. It sets aside 40% of its total token supply for marketing and 20% for buyback rewards to incentivize holders. Solaxy champions smart tokenomics designed to encourage long-term development. They reserve 30% of the tokens for long-term project development and 25% for community-building rewards.
Key Features:
- Enhanced Solana scalability
- Focus on speed and efficiency
- Future-proof technology
Presale Details:
- Raised: $30.14 million so far
- Price: 0.001694 per token
Token Allocation:
- 40% for marketing
- 20% for rewards
- 30% for project development
- 25% for community rewards
Solaxy is the first presale project in history that has successfully raised $30 million. To date, it has raised $30.14 million and the price per token currently sits at 0.001694.
Potential Benefits:
- Early access to a project with significant funding
- Potential for high returns if Solana's ecosystem continues to grow
- Strategic tokenomics designed for long-term growth
Risks:
- Dependence on the success of the Solana blockchain
- Competition from other scaling solutions
- Potential for delays or setbacks in development
SUBBD (SUBBD)
Subbd is a first of its kind AI crypto integrated project. It matches fans and creators directly through its decentralized platform, going after the creation economy’s promising $85 billion influencer subscription economy. Subbd has a compelling value prop that supercharges engagement and monetization. It enables direct, tokenized rewards exchange between fans and creators, providing value that today’s centralized platforms simply can’t offer. Subbd creators can use personal AI assistants to help manage their schedules and interact with their communities through live chat.
Subbd’s presale is officially open! To thank them for their support, fans can purchase the native token at a large discount and gain access to exclusive AI-augmented content, platform discounts, loyalty rewards and other exclusive perks through this exciting subscription-based project.
Key Features:
- Decentralized platform for creators and fans
- AI-powered tools for content creation and management
- Tokenized rewards and incentives
Presale Details:
- 10% of the total token supply allocated through the presale
Benefits for Fans:
- Access to AI-enhanced content
- Platform discounts
- Loyalty rewards
- Exclusive perks
Subbd is a breakthrough presale project designed to give influencers and creators groundbreaking tools and benefits. It provides tokenized rewards, increases engagement, improves monetization. It contributes 10% of the total supply of tokens through the presale.
Potential Benefits:
- Opportunity to invest in a project targeting a large and growing market
- Potential for high returns if the platform gains widespread adoption
- Unique value proposition for both creators and fans
Risks:
- Competition from established centralized platforms
- Challenges in attracting and retaining creators and fans
- Regulatory uncertainty surrounding decentralized platforms
MIND of Pepe (MIND)
It has a fixed supply cap of 3 billion tokens, with 10% of all tokens made available via the presale. That’s right – the MIND of Pepe presale has already raised an incredible $8.1 million! At the time of writing, 1 $MIND = $0.0037265, and early adopters can stake their tokens to earn an impressive 277% APY, massively increasing their initial holdings. However, MIND of Pepe ($MIND) has already raised $8 million in its ongoing presale. The token is ERC-20 compatible and payments are accepted in ETH, USDT, BNB. Payment through credit card is possible.
Key Features:
- AI-powered meme coin
- ERC-20 token
- Staking rewards
Presale Details:
- Raised: $8 million so far
- Token Type: ERC-20
- Accepted Payments: ETH, USDT, BNB, Card
Token Supply:
- Total supply of 3 billion tokens
- 10% allocated through the presale
Staking Rewards:
- 277% APY
Mind of Pepe is the new groundbreaking AI meme coin that’s got everyone buzzing. With only 10% of the total token supply offered in the presale—which will be priced at 0.0037015—the opportunity is limited.
Potential Benefits:
- High staking APY for early adopters
- Potential for viral growth due to its meme coin nature
- Opportunity to invest in a unique and innovative project
Risks:
- High volatility associated with meme coins
- Dependence on market sentiment and online trends
- Potential for rug pulls or scams
Conclusion
Investing in crypto presales can be a highly lucrative yet risky endeavor. Solaxy, SUBBD, and MIND of Pepe are three different projects with their own unique value propositions and risk levels. As with any presale, always do your full due diligence before investing in any of these projects. Know your risk tolerance and always ensure you maintain a diversified portfolio. Please keep in mind the crypto market is extremely volatile, and you shouldn’t expect to be successful all the time.
Categories
- Cryptocurrency
- Presales
- Investing
- Blockchain Technology
- DeFi
- AI