The news of cryptocurrency in Cryptsy must have felt like reading the news of tomorrow today. Such is the atmosphere of crypto presales. Early access. Early risk. First mover boasting should things go up. In theory, a presale is easy to do: a project sells its tokens to investors of a project even before they become accessible to the open market. You buy in at a lower price. In theory, you ride the rocket. Practically, the rocket is at times a piece of paper airplane. That’s the gamble. And it is true, people queue up to it. Browse fresh articles and daily market summaries on Cryptsy, view more anytime.
Presales are due to the fact that projects require capital prior to opening. Developers pitch a vision. Maybe it’s a new blockchain. Maybe a gaming token. Perhaps one more effort in repairing the speed of transaction. They release a whitepaper. They talk tokenomics. Percentages on allocation fly in all directions like confettis. A slice for the team. A slice for marketing. A slice for early investors. The price is usually staged. Stage one is cheapest. Later stages cost more. The clock is ticking, and it puts pressure. “Buy now or regret later.” Sound familiar? It should. Scarcity sells.
The appeal is obvious. Those who were early to the market in the previous cycles experienced small investments grow into spectacular profits. Stories travel fast. One of the friends of a friend converted the lunch money to a house deposit. An engine is kept running by that story. But presales are a fifty-fifty at most. It may experience a thin market following launch. Tokens may dump when there is a cash out by early investors. Some teams vanish. Rug pulls are real. Code can break. Overnight hype can be evaporated. You are gambling on execution, timing and market mood simultaneously. With all that going on, that was a lot of moving parts to what was originally a slick site and a promise.
Due diligence is more of an issue here than near nowhere in crypto. Read the whitepaper. Then read it again. Ask the team whether it is open or it hides behind cartoon characters. Look at token supply. A trillion of cent-fractions tokens may seem cheap to the touch, but math does not lie. Market cap is what counts. Study vesting schedules. When insiders get to dump the very first day, then that is a red flag waving in your face. Audit reports make a difference, but not magic shields. The cracks may be found in communal talk. In case the moderators remove the difficult questions, watch. Sound projects pass through test. Weak ones lose their ground beneath it.
There’s also psychology. There is no better way to exploit FOMO than with Presales. Countdown timers. Bonus rounds. “Last chance.” It is a carnival barker who is screaming the last ticket. You must slow down your heart rate. Question yourself: would I purchase it without a timer? If the answer is no, step back. Diversify. Never throw in rent money. Consider presales a venture bet, since this is what they are. High risk. High potential reward. Most will fizzle. A few might soar. When you come in without blinding, loss is less painful. You may get a very costly education going in dreaming of immediate liberation. Crypto pre sales are a poker table. Smart with your cards, know how many you have and never think the house cannot make.