Cryptsy is still mentioned on crypto forums as a ghost alert marker at a highway that has long since been forsaken. It reminds people that even good opportunities at the early stages might be as glorious as they are scary. That friction which is central to crypto presales. So what is a crypto presale? It is a round of seed and a new project sells its tokens before it is listed in the public markets. Investors buy in first. Usually at a lower price. They in their turn assume more doubt. It is not dice throwing but it is startup pitching. Dig deeper into altcoin analysis and read further on Cryptsy.
Suppose we think of a team and have a plan. They would like to establish a platform, initiate a protocol or push an application using blockchain technology. They offer tokens prior to the product being brought to full life in order to raise capital. That's the presale. In most cases statements are sold in phases. Early rounds cost less. Later rounds cost more. Consumers are driven along in each step. Limited allocations. Countdown timers. Bonus incentives. One is almost provided with back stage passes before the concert is announced. The word is simple, initial assistance may be transformed into larger payoffs in the future.
Why should anybody jump within such a short time? First mover has got real potential. Those buyers who will have purchased tokens in the pre-sale will have them at a discounted price in case the project embarks on launching it after the launch. Out of that price difference profit can be made. Stories about how early investors made their fortunes multiply are like campfire stories. They spark curiosity. They fuel ambition. But there's another side. Some presales underperform. Some of the tokens sell lower than their time of sale. The Hype can be eliminated when real trading in is involved. Markets are ruthless. They are delivery-oriented and not dreamy.
Risk sits front and center. The presale developments are numerous and under construction. Features may be incomplete. There can be pending joint ventures. Timelines can slip. In weaker cases the teams are disintegrated after fundraising. It is the dark side that no one is willing to discuss. This is why it is worth dwelling upon the details. Look through the whitepaper. Check token distribution. The large distribution to in-house lockups that are of short duration might lead to a high sale in the future. When the team is transparent, confidence is obtained. Silence erodes it.
The decisions that are made in most instances are not logical but rather emotional. It has some voice of a want of missing out that it is your golden ticket. The noisiness is added to the social media. "Last chance." "Final round." The mentioned expressions force people to act fast. Slow down instead. Ask clear questions. Do you know the objective of the project? Is there anything that you are risking to lose? Presales are high-risk plays. They can encourage moderation, and correct impetuosity. Action like venture bets, not sure things. There is no substitute of time to research and training, but preventing time is superficial.