What is Pre-ICO
The number of startups that in 2017-18 decided to raise funds for development through ICOs increased sharply. This is due to the fact that this method of obtaining financing is relatively simple, and even more so it is not regulated by law.
But in order to conduct a successful round of ICO, it is necessary to present a truly high-quality and useful project to investors. The stage of raising funds for the implementation of a specific project may vary, but basically they all have a similar structure in which the main round of fees will be Pre-ICO.
The main round of fundraising for the development of a project often involves the Pre-ICO stage – this is the fundraising phase that is used by projects (startups) that do not even have the funds to start work. In order to conduct a preliminary round of sales of project tokens, you just need to create your own website and present the idea and ways to achieve it on it.
Purpose of the Pre-ICO
The main purpose of the Pre-ICO, or as it is also called presale of tokens, is to raise funds to prepare your project for the main stage of the sale of tokens (fundraising). In most cases, the money received during the Pre-ICO is directed to the preparation and launch of the ICO i.e. Purchase of paid advertising, organization of meetings and other expense items.
When investing in project tokens at the Pre-ICO stage, consider the fact that only 8% of projects continue its development after the ICO. Therefore, before buying something, conduct a sound analysis.