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Glossary

Public Sale

November 21, 2023 - Around 5 mins mins to read

A public sale in the blockchain industry refers to the process where a company or project offers its tokens or coins to the general public. This fundraising phenomenon is known as an Initial Coin Offering (ICO) and can be seen as a next-generation form of crowdfunding.

In the cryptocurrency market, blockchain companies often sell specific tokens or coins of a project to raise capital for launching their platform or app. These tokens are typically offered to investors in exchange for cryptocurrencies like Bitcoin or Ethereum. Participants have the opportunity to sell or trade these assets at significantly higher prices on various cryptocurrency exchanges.

An ICO usually consists of three stages: private sale, pre-sale, and public sale. The public sale, also known as the ICO crowd sale, is the most crucial stage in the ICO’s journey to success. During this phase, the downsides and risks associated with a private sale can be avoided.

The public sale generally offers fewer bonuses or discounts compared to the pre-sale or crowd sale periods. The bonus and discount system depend on the level of investment people are willing to make, and the offers may resemble those of the private and pre-sale campaigns.

Advantages of participating in the public sale include predictability of the ICO’s outcome based on the previous two campaigns, lower risk as the project is more developed at this stage, greater liquidity due to the shorter trading time for the token, and reduced impact of cryptocurrency volatility on the token’s price.

However, there are some tradeoffs to consider. The public sale may offer lower discounts compared to the pre-sale period and may have a lower maximum cap per investor. Additionally, there is a possibility of the public sale being canceled if tokens are sold out during the pre-sale period, and there is a risk of token dump when purchased at a discount.

Let’s take a closer look at each stage of an ICO:

What is Private Sale?

The ICO begins with a private sale, which is accessible to a select group of individuals who align with the ICO’s goals. The private sale allows these individuals to purchase tokens before they are available to the general public. This stage is often targeted towards high net worth individuals, venture capitalists, or strategic partners. The private sale provides an opportunity to secure tokens at a significant discount and is typically accompanied by lock-up periods that restrict the immediate selling or trading of the purchased tokens.

What is a pre-sale?

The pre-sale is the next stage in the ICO process and offers an exclusive “early bird” opportunity for people to buy coins before the ICO becomes public. The pre-sale period allows companies or projects to accumulate funds and use them for an effective marketing campaign before the project or app is fully launched. For investors, it provides a chance to obtain a higher discount or bonus compared to the public sale, while avoiding the risks associated with the private sale. The pre-sale often has different participation requirements, such as a minimum investment threshold or a whitelisting process.

What is a Public Sale?

The public sale, as mentioned earlier, is the most important stage in an ICO. It is extensively promoted and advertised as it represents one of the final stages of the token sale. During this phase, the general public can purchase tokens, and the risks associated with a private sale can be mitigated. The public sale generally has a larger pool of participants, as it is open to anyone interested in the project. However, the bonuses and discounts offered during this stage may be smaller compared to the pre-sale. The public sale often has a fixed duration, and tokens can be purchased directly from the project’s website or through a designated platform. It is crucial for participants to conduct thorough research on the project, its team, and its goals before investing in the public sale.

To participate in all three stages of an ICO, follow these steps:

  1. Convert fiat currency to cryptocurrencies such as ETH or Bitcoin and store them in your blockchain wallet.

  2. Take part in the initial coin offering (ICO) during the private sale or pre-sale and secure your new tokens.

  3. Participate in the public sale to further support the project and potentially acquire more tokens.

It’s important to note that the token sale process can vary from project to project. Currently, most token sales occur on the Ethereum blockchain using a smart contract to collect Ethereum tokens and instantly exchange them for the new token issued by the startup. This process is entirely peer-to-peer, without the involvement of exchanges or brokers. However, other blockchain platforms, such as Binance Smart Chain or Solana, also host token sales and have their own unique processes.

In conclusion, a public sale in the blockchain industry refers to the process of offering tokens or coins to the general public through an Initial Coin Offering (ICO). It is a crucial stage in the ICO journey, allowing the project to reach a wider audience and raise the necessary funds to develop and launch their platform or app. Participants in the public sale have the opportunity to support the project and potentially benefit from the future success of the token. However, it’s important to carefully evaluate the risks and rewards associated with each stage of the ICO before investing.

Author

Coincu

Glossary

Public Sale

A public sale in the blockchain industry refers to the process where a company or project offers its tokens or coins to the general public. This fundraising phenomenon is known as an Initial Coin Offering (ICO) and can be seen as a next-generation form of crowdfunding.

In the cryptocurrency market, blockchain companies often sell specific tokens or coins of a project to raise capital for launching their platform or app. These tokens are typically offered to investors in exchange for cryptocurrencies like Bitcoin or Ethereum. Participants have the opportunity to sell or trade these assets at significantly higher prices on various cryptocurrency exchanges.

An ICO usually consists of three stages: private sale, pre-sale, and public sale. The public sale, also known as the ICO crowd sale, is the most crucial stage in the ICO’s journey to success. During this phase, the downsides and risks associated with a private sale can be avoided.

The public sale generally offers fewer bonuses or discounts compared to the pre-sale or crowd sale periods. The bonus and discount system depend on the level of investment people are willing to make, and the offers may resemble those of the private and pre-sale campaigns.

Advantages of participating in the public sale include predictability of the ICO’s outcome based on the previous two campaigns, lower risk as the project is more developed at this stage, greater liquidity due to the shorter trading time for the token, and reduced impact of cryptocurrency volatility on the token’s price.

However, there are some tradeoffs to consider. The public sale may offer lower discounts compared to the pre-sale period and may have a lower maximum cap per investor. Additionally, there is a possibility of the public sale being canceled if tokens are sold out during the pre-sale period, and there is a risk of token dump when purchased at a discount.

Let’s take a closer look at each stage of an ICO:

What is Private Sale?

The ICO begins with a private sale, which is accessible to a select group of individuals who align with the ICO’s goals. The private sale allows these individuals to purchase tokens before they are available to the general public. This stage is often targeted towards high net worth individuals, venture capitalists, or strategic partners. The private sale provides an opportunity to secure tokens at a significant discount and is typically accompanied by lock-up periods that restrict the immediate selling or trading of the purchased tokens.

What is a pre-sale?

The pre-sale is the next stage in the ICO process and offers an exclusive “early bird” opportunity for people to buy coins before the ICO becomes public. The pre-sale period allows companies or projects to accumulate funds and use them for an effective marketing campaign before the project or app is fully launched. For investors, it provides a chance to obtain a higher discount or bonus compared to the public sale, while avoiding the risks associated with the private sale. The pre-sale often has different participation requirements, such as a minimum investment threshold or a whitelisting process.

What is a Public Sale?

The public sale, as mentioned earlier, is the most important stage in an ICO. It is extensively promoted and advertised as it represents one of the final stages of the token sale. During this phase, the general public can purchase tokens, and the risks associated with a private sale can be mitigated. The public sale generally has a larger pool of participants, as it is open to anyone interested in the project. However, the bonuses and discounts offered during this stage may be smaller compared to the pre-sale. The public sale often has a fixed duration, and tokens can be purchased directly from the project’s website or through a designated platform. It is crucial for participants to conduct thorough research on the project, its team, and its goals before investing in the public sale.

To participate in all three stages of an ICO, follow these steps:

  1. Convert fiat currency to cryptocurrencies such as ETH or Bitcoin and store them in your blockchain wallet.

  2. Take part in the initial coin offering (ICO) during the private sale or pre-sale and secure your new tokens.

  3. Participate in the public sale to further support the project and potentially acquire more tokens.

It’s important to note that the token sale process can vary from project to project. Currently, most token sales occur on the Ethereum blockchain using a smart contract to collect Ethereum tokens and instantly exchange them for the new token issued by the startup. This process is entirely peer-to-peer, without the involvement of exchanges or brokers. However, other blockchain platforms, such as Binance Smart Chain or Solana, also host token sales and have their own unique processes.

In conclusion, a public sale in the blockchain industry refers to the process of offering tokens or coins to the general public through an Initial Coin Offering (ICO). It is a crucial stage in the ICO journey, allowing the project to reach a wider audience and raise the necessary funds to develop and launch their platform or app. Participants in the public sale have the opportunity to support the project and potentially benefit from the future success of the token. However, it’s important to carefully evaluate the risks and rewards associated with each stage of the ICO before investing.

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