The Basics of Crypto Presales

Presales are aimed at speculative investors who want exposure to new projects, concepts, and technological advancements. Presale investors purchase a newly created token, often built on an established blockchain like Ethereum or Solana, so Ethereum presales and Solana presales are very popular.

The purchased tokens won’t trade publicly until the presale ends, which can take several weeks or months. On completion, presale tokens are added to crypto exchanges, usually at a higher valuation.

The key benefit of joining presales is that investments are made from the ground up. This is like investing in a new startup or a stock IPO. Put otherwise, presale investors often purchase tokens at a small market capitalization.

The theory is that presale projects will grow over time, reaching new milestones and increasing mass adoption. This can translate into a higher token price. For example, Ethereum’s presale started at $0.31. Ethereum has since reached an all-time high of almost $4,900.

Crypto Presales: How They Work

Crypto presales (more commonly known as ICOs) are simple to invest in. However, the key takeaway is that presales only accept crypto payments. This means you can’t use a traditional payment method like a credit card or bank transfer.

Nonetheless, you can easily buy crypto coins from an exchange, transfer them to a wallet, and then join the respective presale.

Presale projects create a new token on a specific blockchain, such as Ethereum. Most come with a maximum supply, with a percentage allocated to the presale event.

For example:

• Wall Street Pepe has created 200 billion WEPE tokens.
• These follow the ERC-20 standard, meaning they operate on Ethereum.
• 20%, or 40 billion WEPE, will be sold during the presale.

Most presales have a fundraising target, known as the “hard cap”. This subsequently determines the initial valuation.

For instance, suppose the presale raises $10 million. 10% of the token supply was sold. This means the presale project has a market capitalization of $100 million.

Crypto Presales: What Happens Next?

Almost all crypto presales distribute their tokens after the event. This is a security measure that prevents secondary markets from being created. This is because the presale tokens could be added to a decentralized exchange (DEX) without the project’s authorization.

The tokens are transferred directly to the investor’s crypto wallet. This will be the same wallet address that was used when investing.

We found that the best crypto presales list their tokens on exchanges a few hours or days after the distribution process. This could be a decentralized or centralized exchange(s) or a combination of both.

• Centralized Exchange: Tokens must be transferred to the exchange’s wallet address before trading
• Decentralized Exchange: A wallet is connected to the DEX, allowing holders to trade on-chain without an account

Presale tokens will usually start trading at a higher price (when compared to the presale rate). This provides early participants with an immediate profit. However, selling straightaway can be costly, as quality presales provide larger gains over the long term.

3 Successful Crypto Presales: Case Studies

While not all presale campaigns are successful, some have produced early investors with solid gains. As mentioned, the biggest profits usually come when holding long-term.

Here are three of the best crypto presales to know about:

Ethereum

Ethereum highlights the lucrative riches available when investing in innovative technologies from the ground up. It launched its presale in 2014, with smart contracts and decentralized applications (dApps) an unproven concept.

Those sharing Ethereum’s vision were able to buy ETH at just $0.31. Although Ethereum experienced some hiccups in its early days, it’s now the de facto blockchain for dApps. It’s also the second-largest crypto asset by market capitalization.

ETH reached an all-time high of over $4,900 in 2021. This would have provided presale gains of almost $8 million for every $500 invested.

Neo

Neo is a high-performance blockchain ecosystem that supports dApps, decentralized storage, native oracles, and native name services. It also supports cross-chain functionality and multiple programming languages.

Unlike Ethereum, Neo uses a two-token system. NEO is its investment token while GAS is used to pay for transaction fees. NEO was made available to presale investors in 2016. Those getting in early paid just $0.032.

NEO reached an all-time high of $196.85 in 2018. This amounts to presale gains of $3 million for every $500 invested. In percentage terms, that’s growth of 615,000%.

Avalanche

Avalanche is a highly scalable and low-cost blockchain that, just like Ethereum and Neo, supports smart contracts and dApps. It's particularly popular with gaming developers, owing to Avalanche's high-throughout and seamless launch process.

AVAX, the blockchain’s native asset, was initially sold to presale investors in 2019. The lowest price available was $0.33. AVAX was listed on exchanges in 2020 at $5.32. This provided an immediate upside of over 1,500%.

However, AVAX peaked at $146.22 in the following year, amplifying the presale gains to over 44,000%. Therefore, a $500 investment in the Avalanche presale would have been worth over $220,000.

Benefits of Crypto Presales

Crypto presale benefits are no different from investing in innovative startup companies. Investors can gain exposure to groundbreaking ideas or products at a small valuation. Over time, that valuation can increase by many multiples, providing early investors with substantial gains.

For example, consider that early Uber investors secured a $3.86 valuation in 2010. Back then, ride-sharing was largely an unproven concept. Fast forward to 2019 and Uber was listed on the NYSE with an $82.2 billion valuation. This provided early backers with gains of over 21,000x.

Similar presale gains were witnessed by Ethereum, Neo, Avalanche, and many other crypto presales. This is why presales are the go-to method for finding undervalued gems. Crucially, presales are inclusive, unlike traditional startup investments.

This is because startups typically only raise funds from accredited investors, such as venture capitalists and financial institutions. In contrast, anyone can invest in presales, provided they own a crypto wallet and some coins.

Risks of Crypto Presales

Even the best crypto presales are risky. As mentioned, presales offer access to something new and unproven. The respective technology might never be developed. Equally, another project could be working on something similar and bringing their product to the market sooner.

Importantly, presale tokens will rise and fall based on these factors. So, if the development process stalls, the token price could collapse. There are also broader market risks. A majority of tokens will lose value during bear markets.

This is an extended period where market sentiment is low, meaning selling pressure is high. A presale token launching during a bear market can be catastrophic. Fortunately, the markets are currently bullish, with Bitcoin now trading above $100,000.

Nonetheless, presales can also turn out to be scams. Many have anonymous teams, which you wouldn’t find in the traditional finance world. The proposed product might not exist, meaning presale buyers are left with worthless tokens.

The team could also dump their token supply when trading begins, which would have the same effect. Beginners should understand the aforementioned risks before proceeding. Keeping presale investments small is the smartest option.

Crypto Presales: The Pros and Cons

Here are the pros and cons of crypto token presales:

Pros:

• Invest in new projects at the lowest pre-listing valuation
• Secure a sizable discount from the eventual exchange listing price
• Gain exposure to new technical advancements and concepts
• Presale launches are increasing, making diversification more seamless
• Inclusivity ensures that anyone can invest in presale events
• The best crypto presales have historically produced substantial gains

Cons:

• Many presale events rely on hyperbole and aggressive marketing
• Most projects are run by anonymous teams
• Presales can turn out to be scams
• Token price declines can lead to massive losses
• Investments are locked until the presale ends

Finding Top Crypto Presales Early: Best Methods

Presale projects usually offer different prices depending on when the investment is made. Many increase the cost price every few days, which is an incentivization tactic to encourage early participation. This means finding presales early can provide the biggest upside potential.

Consider these methods when searching for the best crypto ICOs.

• Follow Crypto Venture Capitalists: While presales are inclusive, they’re not only available to retail clients. Some of the earliest investors are venture capitalists (VCs) specializing in crypto assets. Therefore, a great tactic is to follow VCs like Multicoin Capital, which has a proven track record of investing in high-growth projects.
• Follow Whale Investors: Crypto whales invest significant sums into digital assets, including presale projects. Following their wallet movements can provide clues on which presales they’re investing in. Tracking sites can streamline the process, as notifications are sent when wallet transactions are triggered.
• Use Presale Listing Platforms: You will also discover presale events when using specialist listing platforms. ICOBench is a good option. It lists ongoing and upcoming crypto presales from multiple blockchain ecosystems. It also offers detailed reviews of the leading projects.
• Follow Presale Pages on X: There are X pages dedicated exclusively to presale events. Following them will provide real-time alerts when new posts are made. Top 7 ICO, which boasts over 142,000 followers, is a good example. It also provides data on blockchain trends, an important metric when picking presale projects.
• Use Keywords on Google: Another method is to search for “crypto presale” or “crypto ICO” on Google. You’ll notice recent search results come from crypto news websites, providing the latest presale announcements, reviews, and analysis. It’s worth checking whether the article is sponsored, as this will impact the narrative.

Picking the Best Crypto Presales to Invest in: Suggested Methodology

Here are the factors we considered when creating our top crypto presales list.

• Token Contract Verification: All presale tokens have a unique smart contract address. This should be available on the presale website. Check whether the contract has been audited. The audit should confirm that no potential vulnerabilities were discovered. We’d also suggest cross-referencing the tokenomics with the audit, such as the total supply.
• Hard Cap and Fully Diluted Valuation: Research the presale hard cap, which is the maximum amount that will be raised. Then check the percentage of tokens being sold to presale investors. This will give you the all-important fully diluted valuation (FDV). You can then assess whether this valuation aligns with your goals and risk tolerance.
• Product Milestones: Most presales have roadmap targets, otherwise known as product milestones. This should provide clear objectives for specific development phases. For instance, launching the beta network by Q2 2025. Evaluate how realistic each milestone is to make an informed decision.
• Project Fundamentals: Similar to investing in a traditional startup, assessing the presale fundamentals is crucial. This means understanding the project’s unique selling point and what, if any, problems it solves. For example, Crypto All-Stars allows meme coins from different networks to be staked in one place.
• Presale Upside: Some presales are transparent about pricing. This means they publish the presale rate for each stage, not to mention the eventual exchange listing price. This will help you assess whether investing early is financially viable. After all, it could take several months before the tokens begin trading on exchanges.
• Crypto Trends: We also suggest spending time analyzing existing crypto trends. For example, if AI coins are trending, consider investing in AI-centric presales. You can explore on-chain data, aggregation sites, news websites, and other sources to see what’s hot.

Investing in Crypto Token Presales Safely

Crypto presale investments are simple but safety best practices should still be implemented.

This includes the following:

• Wallet Choice: All presale investments require a suitable wallet. Not only for investing but storing the respective tokens. Using a reliable and reputable wallet is imperative. Avoid using new wallet providers or those with bad reviews.
• Backup Passphrase Management: You should also ensure the wallet’s backup passphrase is secure. This means writing it down on paper. Never store it online, such as in an email draft or Google Drive. The backup passphrase will be needed if you lose access to the wallet (for instance, if you misplace the device).
• Sensible Investments: Most presales fail, so investing sensible amounts is crucial. Consider your investment budget and stick to it. Distribute the available funds to multiple presales to avoid over-exposure.
• Presale Website: Always cross-reference the presale URL to ensure it’s legitimate. Increasing instances of presale phishing sites have surfaced, which will lead to a loss of funds. Confirm the URL on the presale’s socials, including X and Telegram.
• Liquidity Pool: Another presale scam sees the founders withdraw liquidity once tokens are added to a DEX. This can’t be safeguarded until the tokens start trading, but it’s important to be aware of the risks anyway. Use a data aggregation site like DEXTools to ensure the liquidity pool is locked. If so, it will display the locked icon.

Conclusion

Similar to penny stocks, upcoming crypto presales can provide unprecedented riches. Equally, most presale tokens fail, so this marketplace is only suitable for high-risk investors. Always research presale projects extensively before allocating any funds.

In terms of top picks, Wall Street Pepe has everything required to succeed. It combines alpha trading signals with meme coin features, with presale investors securing a low valuation. There’s also a presale discount available when investing in the current stage.

Visit Wall Street Pepe

FAQs

Is it better to buy crypto in presale?

Yes, from a price perspective, it’s generally better to buy cryptocurrencies when they’re in presale, as this provides the lowest valuation. However, presale investments are riskier, as they’re often linked to unproven concepts.

What are the disadvantages of presale?

Presales are largely speculative, as the underlying product might not be fully developed. Additionally, presale tokens witness high volatility when listed on exchanges, so you could lose money.

How do you buy crypto before it hits the market?

The only way to buy crypto before it hits the market is by investing in presales (also called ICOs). This provides preferential pricing and a first-mover advantage.

What are the best meme coin presales?

Some of the hottest meme coin presales right now include Wall Street Pepe, Flockerz, and Solaxy.

Which crypto ICOs have the most potential?

Some of the most attractive crypto token presales right now include Solaxy, Wall Street Pepe, and Best Wallet Token.