Understanding Pre-ICO: A Guide to How it Functions

ICOs (Initial Coin Offerings) have gained much-deserved attention and have effectively emerged as a great alternative to the traditional fundraising process. An ICO allows the purchase of newly issued coins or tokens at a predetermined price.

Firstly, you require building a coin for your ICO project by connecting with a top ICO software development company and follow the below-mentioned steps:

• Specifications: First and foremost, lay down the rules and regulations and a set of specifications for the entire crypto community. Avoid making any updates in start date, end date, total market cap, and other significant parameters.
• Implementation of a smart contract: The inconsistencies, if any, should be detected pre-hand. All lines and tests should be thoroughly conducted to review the code properly.
• Tools of the trade: You may establish your token by developing it with Ethereum smart contract.
• Implementation: Further, the contract is fully tested along with its properties to establish the missing parts, if any.
• Deployment: Afterwards, the unit testing of the smart contract is done; it is compiled by using truffle and deployed for further testing.
• Manual testing: Again, the code is made to go through extensive unit testing by testing it against a live blockchain.
• ICO status: It is an ideal page that reflects the status of ICO and informs the interested parties about the journey so far. This is the stage where public attention has to be grabbed at a maximum level.

Once the token has been created, it needs to be taken among the masses.

Thereby, the first stage is a pre-public engagement phase that is roughly six months long and the second is post-public engagement phase that normally takes around three months from the first announcement to the actual sale of tokens.

Herein further in this article, we will comprehend in detail about the pre-ICO token sale.

What is Pre-ICO token sale?

ICO presale is the event where the tokens are sold before the actual official announcement. It allows investors to buy coins/ tokens much before any public ICO campaign is set up. Mostly, pre-ICOs are conducted to raise a small number of funds, usually 10% of the total fund amount from angel investors. The tokens are initially sold at a lower price and a considerable amount of bonus is allocated to early investors for showing their interest in the project in the initial stage. The project should be transparent and should regularly inform the investors regarding the following two criteria:

• Who all will get the tokens
• Absolute lockup period

The fundraising target in the pre-ICO sale is much lower as we have already discussed and is much cheaper in the initial stage. A particular timeline for the pre-ICO token sale is devised and accordingly, a market strategy is formulated. The pre-ICO is conducted is usually conducted in two or three stages, and the price of the token is revised after each stage.

Aim of Pre-ICO sale

The general objective of the pre-ICO campaign is to obtain some genuine angel investors who would invest in the project. If say 10% of the total amount is gathered, then that amount is used to further execute the project, like building up the infrastructure, or hiring new team members, or accomplishing any other step in the roadmap.

Benefits of Pre-ICO sale

Pre-ICOs are different from main ICO, in the sense that different smart contracts are used for both the events. Separate smart contracts focus on a smooth transition and regular account audit. Usually, a pre-ICO token sale is conducted to raise money for initial settlement and fund the launch of the main ICO event. Some companies also utilize the funds for paid promotion to attract investors and for further strategic management.

End Notes

The path of pre-ICO and post ICO requires the constant support of blockchain experts. If you are planning to launch your ICO, associate with the best ICO development company.

We at Antier Solutions, provide mission-driven services to maximize fundraising opportunities for your project at every step. We provide all-inclusive ICO development services – from token development, smart contract development, ICO website creation to white paper design, and ICO marketing.

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