A crypto presale is when a new crypto project offers a beginning-stage investment opportunity to a particular group of investors before it goes public. In layman’s terms, it is a starting-level investment opportunity where the latest crypto projects generate capital by putting their native tokens in front of a specific group of traders. Though presales are known for offering high monetary returns, it is highly important to understand what happens after a presale. Post-presale, the crypto project will typically go to the stage of public sale. With the help of feedback received in the crypto presale, the crypto project focuses on the improvements of the token before going public. In this article, we will explore what happens after presale.
Post-Presale Token Distribution
Once a crypto presale is over, it is token distribution time. Generally, the tokens are distributed according to the participation level of the investors. The method of distributing tokens and the timings vary as per the project. The common ways of distributing the tokens are airdrops, platform-based distribution, and claiming manually. Coming to the timing part, one has to satisfy the liquidity lockup time in presale before receiving the tokens. The actual timings range from a few weeks to months, starting from the end of the presale. The process to claim presale tokens includes a few steps, starting with the verification of the investors, the claiming stage, and finally, receiving the tokens. Investors and traders looking forward to investing in top crypto presales must check the project’s distribution plan before participating in order to avoid any mishaps on the way.
Vesting Period & Lock-up Period
In a crypto presale process, vesting and lockup periods are quite important as they influence the accessibility and sell timings of the tokens owned by the investors. A vesting period is the process of gradual release of the tokens by the crypto project to the participants over a certain period. It is like receiving a small portion of one’s allocation over a week or a month. The lock-up period is the restricted time when the investors cannot sell their tokens. The lock-up period is used by the project to reward the long-time holders and prevent early dumping. The vesting period maintains the gradual distribution of tokens that ultimately reduces the market volatility. The token lockup period induces stability and promotes confidence in the long run of the project. Firms and enterprises use these periods to increase stability, encourage long-term growth, and ensure the long-term participation of investors.
Token Listing on Exchanges
For a developing cryptocurrency project, it is essential to carry out a token listing on the exchanges, as this gives the token greater liquidity and means it is easier to trade. The quest usually demands an entirely new request by the project holders and specific information needs to be sent to any exchange that would want to provide a listing service, and lastly, all such information will go through a verification process by the exchanges.
The key liquidity and market dynamics considerations entail the following:
- The listing application must be forwarded to the most prominent industry players like Binance and Coinbase in order to enjoy good trading volume and liquidity.
- The listing should ensure that more trading pairs are created with major reserve currencies such as Bitcoin and Ethereum, which would ensure that the token has additional overall stability and breadth.
- The presale stage of the project development should be aimed at building up an interactive community and obvious marketing activity to support active trading volume uplift measures.
Market Volatility Post-Listing
After the token is listed on the exchanges, it experiences a high level of volatility. Some of the key factors that play a significant role in the market volatility post-listing are as follows:
- The token can witness a downward, upward, or both trends in price movement when it is freshly listed on the exchanges and receives increased attention and trading actions.
- Overall market sentiment governed by factors such as global economic situation, regulatory news, or mega-cryptocurrencies price movements affect the volatility.
- Project performance has a significant impact on a token’s price movement. It includes new partnerships, product launches, and community engagement dives. Positive performance increases the price and vice versa.
- High trading volume ramps up the volatility, and lower liquidity slows down the market.
Community Engagement
If a project is looking for long-term success, it is mandatory to have an engaging community at the back. Once a successful presale is conducted, a high level of community engagement becomes necessary. Some of the key roles of the community are as follows:
- The members of the community work as brand ambassadors by spreading awareness about the crypto project.
- The community members provide feedback, report bugs, and solve other users’ queries through forums and social media.
- Community members also get the opportunity to participate in the governance of decisions via voting or making contributions.
The community members are advised to remain informed and updated about the project. The common ways of staying informed include following the official channels, participating in engagement drives, and learning about the project roadmap. This way, the members can contribute to the project’s growth, and become a part of a community, and increase their understanding of the crypto industry.
Risks Involved Post-Presale
The investors must know about the potential risks post-presale. Some of the key concerns are as follows:
- A project may sometimes fail, causing a loss of investment.
- There are a lot of scams in the industry where the developers abandon the project and run away with the investors’ money.
- The regulatory landscape is always changing and sometimes may affect the project adversely.
- Unwarranted delays in project development demotivate the investors and can lead to project failure.
- High volatility in the crypto market can lead to potential losses.
Here are some tips that one can follow to protect their investment.
- Conduct thorough research on the project before investing.
- Diversify the portfolio.
- Use risk assessment strategies to avoid financial hiccups.
- Stay updated about the project’s development.
- Use high-grade security wallets to avoid scams.
Conclusion
After a successful presale, several things happen, including the token distribution with vesting and lockup periods, listing on the exchanges, and engaging with the community. Investors are advised to carry out proper research about the project before starting to participate and being active members of the community to stay updated. To maximize returns after an investment in a presale, investors must keep abreast of the developments on the project. They have to diversify the portfolio as per the risk assessment strategies in order to manage the volatility. Lastly, they have to focus on committing to the crypto project for the long term so that they get the maximum out of their investment.
