The cryptocurrency industry is showcasing significant growth in 2024, drawing in international investors of different caliber. As of May 22, the market capitalization reached $2.57 trillion, with Bitcoin, Ethereum, and many altcoins increasing in price by 50% this year. The most substantial profits since the start of the year belong to investors that got in new projects, like Dogwifhat, where returns exceeded 20x. Early bird investors, pools, and communities invest in such projects at the earliest stages, securing the lowest prices for tokens. The most common formats of early token investments include presales and allocations.
Token Presales and Allocations
A Presale is an investment stage where crypto projects sell their tokens before officially listing them on an exchange. Presales typically occur in multiple stages, with the token price gradually increasing, culminating in the token’s launch on public markets.
Allocation refers to the distribution of a certain number of tokens among investors participating in the early funding rounds of a project. Investors purchase lots and subsequently receive tokens. Allocations operate similarly to presales, offering investors access to tokens at favorable terms.
Presales and allocations can be open, private or of a combined type, with information about the early investment stages shared only among a select group. The most promising projects often secure support before any public announcement, resulting in fewer tokens available in the public presale stage.
Token Presales and Allocations
A Presale is an investment stage where crypto projects sell their tokens before officially listing them on an exchange. Presales typically occur in multiple stages, with the token price gradually increasing, culminating in the token’s launch on public markets.
Allocation refers to the distribution of a certain number of tokens among investors participating in the early funding rounds of a project. Investors purchase lots and subsequently receive tokens. Allocations operate similarly to presales, offering investors access to tokens at favorable terms.
Presales and allocations can be open, private or of a combined type, with information about the early investment stages shared only among a select group. The most promising projects often secure support before any public announcement, resulting in fewer tokens available in the public presale stage.
