How to Participate in Pre-Release ICOs?

Capital constraints can cause many startup ICOs to rely on pre-sale or pre-release investments to generate the funding required to launch the actual ICO campaign on the ICO release date. These pre-sale ICOs have benefits for both the investor as well as the ICO. The ICO gets the monetary traction required to launch while the investor gets access to options, conditions, and additional benefits while also being able to purchase at steep discounts (up to 50%). Pre-sale ICOs usually target venture capitalists, hedge funds or accredited investors but can sometimes include private investors as well.

What to Look for In Pre-Sale Before You Even Start

There are certain points of interest that need to be taken into account before considering investment in a Pre-sale ICO:

Product/ICO Aspects

Before proceeding for investment, check for the following:

• Is there a finished product available which can be tested or trialed?
• Does the team behind the project measure up in terms of ability, broad-spectrum knowledge, and a proven track record?
• Does the project tick all the right boxes in terms of compliance wherever the ICO is being made available?
• Is there a timeline for execution with a special focus on marketing initiatives?

Pre-sale Aspects

Things to consider within the pre-release include:

• Determining the level of interest within the community from influential backers. Big names are a sure sign of potential.
• The existence of a hard cap for post pre-release evaluation. You will need a baseline to analyze performance.
• How transparently information on aspects of the pre-sale activity is made available to you. Are you able to access information when you need to?
• Whether the discounts on offer are conservative (conservative estimate being roughly up to 20- 30 % or ideally less).

How to Participate in a Pre-Release ICO

Perhaps the most obvious step is to refer to the ICO site to get a feel of the application process for pre-sale ICO. Generally pre-sales open from about a month to several weeks before the ICO release date, some even longer. Stay connected to ICO listing sites such as ico-check to get timely updates on upcoming pre-sales. Also, understand the type of contributors are being invited (hedge funds, accredited visitors…etc.) and whether there is scope for private investment prior to the ICO release date.

Networking is crucial to be successful in gaining access to pre-sales. Look for referees who can vouch for your value in the project. These days, it isn’t so much about how much money you can invest as it is about how much value you can bring into the project. Bonus points for marketing contributions as PR are one area where ICO startups often need the most help. Given that many fly-by-night investors buy low and seek to sell at the ICO price, thereby devaluing the ICO, startups are increasingly getting picky.

Participating in pre-release ICOs doesn’t have to be a difficult task. Understanding what the ICO needs as far as contributions are concerned and being able to navigate the insider circle can determine how successfully and effectively you are able to participate.