SmartBCH: Pre-sales

The term “Pre-sale” is nothing new to many here. The introduction of SmartBCH last year made the word a constantly used one on various groups. Pre-sales are done at the beginning of a project ahead of an initial coin offering, the token is sold out at a lesser price to listing price to everyone interested. The token is distributed immediately after buying from the pre-sale or at a later time to everyone.

Why pre-sale?

Pre-sales are of great advantage to both the dev and the investors, especially if the project turns out well after launch. For the dev, pre-sale act as a form of awareness before the project is introduced to the public or before listing on various dexes and market. It also provides funds for finalizing a project, providing liquidity on various dexes as starters and also it helps in re-injecting life into the project at intervals.

While for investors, the advantage of getting involved in a pre-sale is much. The listing price is always greater than the pre-sale price which gives the assurance of profit. If the project ends up being a great success after listing, the biggest gainers will be investors that participated in the pre-sale. Sometimes some projects offer additional gifts to people that buy a token during the pre-sale. It can be incentives like NFTs, airdrops or even a different token as a gift.

Can Pre-sales be a scam?

Sure, pre-sales can be used to scam the public. We’ve seen cases where the dev run away with every money gathered from a pre-sale, while some cart away with it, halfway through the pre-sale. And investors are left with a token of no use. There are other different ways dev make use of pre-sale to scam people. We’ve seen cases of some listing with low liquidity, owning half of the token which is then swapped at will.

Engaging in pre-sale is a risk

Everything in crypto is a risk. That assured venture you have in mind is a risk that might pay or boomerang. As said earlier, what determines if investors will make a profit or loss is the success of the project after launch. However, it’s been noticed that people don’t wait to know how successful a project will be before cashing out. The pre-sale itself is seen as the main deal. What do I mean by this? Let’s say a token called SAMPLE is having a pre-sale peg at 0.0050BCH and a launch price of 0.0075BCH, automatically, that’s a 50% profit immediately after listing. Now the race against time begins for all investors, whosoever swaps the token on time is the winner while those who aren’t so quick lose their investment or end up with useless tokens.

Best time to buy a token

Engaging in various pre-sale has been a blessing to many, I can remember how glad those who bought $Eben doing the pres-sale were when it went up to $3. Also, I’ve seen cases where a token falls below pre-sale price minutes after its listing leaving those who missed the pre-sale with an option to buy at a good price.

In essence, there’s no perfect strategy for this. You might join a pre-sale, sell immediately after listing and be glad you did after checking hours later. You can also join a pre-sale, sell immediately after listing and regret doing that when you see the price increase. You can miss a pre-sale and never get to buy at a cheap price but t the same time, you can miss a pre-sale and be glad you did a few minutes after launch.

In conclusion, joining a pre-sale is 50-50 business. It has its risk and also its advantages. Your choice and timing might later be the determinate of the profitability of your investment. Sometimes a little delay might cost you a lot and some other times a little delay might end up being a blessing. Also, always do proper thorough research before hopping on to any project in order not to lose all your vestments to scammers.

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