What is the difference between an ICO presale and a public ICO?

ICO presale (before making it open for public) is where you’d want to get private investors (from your personal contacts and circles) to get the ball rolling, to get the first breath of oxygen for the token startup. It also shows to the public, ‘we’re in business’. Almost all ICOs offer bonuses and discounts to attract early birds. Public ICO comes later and is open for everyone.

Terms and conditions vary for ICOs, which mainly depend on the regions where the company is registered and the type of token they issue.

For instance ‘Science Token’ (U.S. based) offers something like;

Presale ICO

• Maximum of 99 U.S. investors. Min investment $250K
• Limitless investors from rest of the world. Min investment $50K

And they offer no discount, bonuses or perks, why? because they can, Science is a huge name and they don’t need to beg.

Public ICO

• Limitless investors (but if from the U.S. min of $25K investment)

There are harsher restrictions on U.S. investors because the SEC imposes very strict regulations when an ICO issues a securities token.

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The main aim of ICO is to raise funds for what ever idea they have to deliver the product. This is the main motto of every ICO. So they maintain different strategies like Private sale ,Pre sale ,Main sale

To address this question the pre sale is the stage where every ico keep max off to purchase their tokens and eventually decrease the offer as the days proceed and here they implement smart contract technique to send the tokens to the investors who have invested in their ico. But many ICOS implement the smart contract technique at the stage of main sale.

So during the main sale the value of token of the particular ICO increases and the demand also increases too. And the tokens will be distributed to the investors to their wallets after they have purchased.

I personally feel that Presale is the best sarele where every one can get huge number of tokens for just investing the small amount.

I will take the example of one ICO. You will get entire knowledge of the Presale and the Mainsale

SwachhCoin which is a Decentralized Waste management sector is now is now in presale phase where they are providing a very huge discount on the tokens.

They are providing around 47% discount for the 5 days of presale then the discount automatically decreases after few days. Which is very huge for the crypto investors and eventually they will come to stage where there will be not discount for purchasing tokens.

In this phase they accept currencies like

Btc,ETH,XRP…etc and some accept fiat too.

Good luck!

Note :- I am not an investment advisor. Do your own research before investing.

Initial Coin Offerings (ICO) pre-sales are typically there for the company or leadership team to raise the necessary funds to gear up for the launch of the public ICO and/or to get some more of the product/service finished before the public launch of the ICO.

The pre-sales will typically give a bonus for contributing during the period since your funds will be locked up earlier and, as an investor, you are taking a bigger risk on them because you invested earlier.

Another reason companies will do an ICO pre-sale is to get private Venture Capital money in at a bigger discount than public funds. This seems to be becoming a trend in the space - garnering VC funds in pre-sale. Hope this helps!

For example, Red Lanterns team during pre-ico gathered 200.000$, the open sale started couple days ago.

RL team has been waiting for this day for several months, and now we are glad to say this — RL Token Pre-sale has started.

You can buy REDL tokens using RL electronic wallet https://wallet.red-lanterns.com; one token equals one dollar. Become an investor and make your own contribution into an ambitious startup!

Presale are often raised similar to how VC funding works (and one of my friends running one said the process was identical). It's closed off to only accredited investors willing to give a large sum.

Public ICOs run like crowdsourcing events: effectively opened to the public for any amount. You don't need to be accredited and assuming you're not geo-locked from investing, you can give as little or much as you please.

Most companies have, at the very least, a public ICO. Some will also have a private pre-sale, for early sales as well as anchor investors to lend credibility.

• ICO PRE-SALE

The ICO pre-sale is the perfect time to look for the private investors (people you already know or their personal contacts). It’s actually the time before you put your token sale open for public, and in the most cases, the time when you gather huge investments. It’s all about the preparation for the main/public sale. Sometimes ICOs are even looking for investors on some of the major blockchain conferences, so they can announce they are open for business.

Benefits:

Depending on the type of ICO and their regulations, many are giving huge discounts for the pre-sale period. (exp. Virtual 3D Web ICO - they are giving up to maximum 30% discount on their upcoming pre-sale of Avatz token). If the price of the token is low, those discounts are just precious.

• ICO MAIN SALE

This is when everything is open for public and laying on the table, available for everyone to invest in that ICO. Of course, the price of the token gets higher, but also the demand for it increases.

Hope this helps! I hope you find the answer you needed.