definition of pre sales

Introduction
Abstract
1.
Meaning: The practice of selling tokens or products to selected users or investors before a project's official launch or public release.
2.
Origin & Context: Pre-sales originated during the 2017 ICO boom. Early crypto projects sold tokens to venture capital firms and early supporters before official public fundraising (ICO) to quickly raise capital and build community support.
3.
Impact: Pre-sales provide projects with rapid funding channels and reduce fundraising risk. For investors, pre-sales typically offer better token prices and earlier participation opportunities. This accelerated crypto ecosystem growth but also spawned numerous scam projects.
4.
Common Misunderstanding: Beginners often assume lower pre-sale token prices are always better. In reality, low price is only a surface advantage. What matters more is the project's credibility, team capability, and technical feasibility. Many scam projects exploit 'ultra-low prices' to attract novice investors.
5.
Practical Tip: Before participating in pre-sales, establish a 'three-step checklist': Step 1, verify project information (website, social media, track record); Step 2, read the whitepaper and understand the technical solution; Step 3, assess team background and funding amount. Only consider investing if all three pass.
6.
Risk Reminder: Pre-sales carry multiple risks: funds may be misappropriated or projects may exit scam; token prices may crash after launch; some jurisdictions classify token sales as securities, making pre-sales potentially illegal. Always understand your local regulatory policies before investing.
definition of pre sales

FAQ

What Does Presale Mean?

A presale refers to the stage where a product or asset is offered for purchase before its official launch. Consumers typically pay a deposit or the full amount in advance to reserve the product. This approach allows the project team or manufacturer to gauge market demand ahead of time, while buyers may benefit from priority access or discounted pricing. Presale items are generally shipped or delivered within an agreed timeframe.

How Is a Presale Different from a Regular Purchase?

Presales require customers to make payment upfront and wait for delivery, which may take weeks or even months. In contrast, regular purchases involve buying in-stock items that are shipped immediately after payment. The advantages of presales include typically lower prices and guaranteed availability, while disadvantages involve longer wait times and the need for patience. For more details, see presale definition.

What Risks Should You Consider Before Joining a Presale?

The main risk with presales is the time commitment—buyers may have to wait several weeks or months to receive their product or asset. Additionally, it is crucial to verify the seller’s credibility to avoid scams or unexpected delays. Choosing platforms with clear refund policies is recommended, and you should fully understand presale terms, estimated delivery times, and refund conditions before committing.

What Is the Difference Between Full Payment Presale and Deposit Presale?

In a deposit-based presale, customers pay a portion of the total price upfront (usually 10-30%), with the remaining balance due before delivery. This option carries lower financial risk. A full payment presale requires the entire amount to be paid in advance but usually offers deeper discounts. The choice between these options depends on your budget and trust in the seller.

Can You Cancel or Return Presale Items?

Most platforms allow customers to cancel presale orders and receive a refund within a specified period, although cancellation fees may apply. Once production has started, return and refund policies often become stricter. Always review the platform’s return policy before placing a presale order to ensure you are comfortable with the terms.

References and Further Reading

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Related Glossaries
Vesting
Token lock-up refers to restricting the transfer and withdrawal of tokens or assets for a predetermined period. This mechanism is commonly used in project team and investor vesting schedules, exchange-based fixed-term savings products, and DeFi voting lock-ups. The primary purposes are to reduce sell pressure, align long-term incentives, and release tokens either linearly or at a fixed maturity date, directly impacting token liquidity and price dynamics. In the Web3 ecosystem, team allocations, private sale portions, mining rewards, and governance power are often subject to lock-up agreements. Investors should closely monitor the unlock schedule and proportions to manage associated risks effectively.
TRON Definition
Positron (symbol: TRON) is an early cryptocurrency that is not the same asset as the public blockchain token "Tron/TRX". Positron is classified as a coin, meaning it is considered the native asset of an independent blockchain. However, there is limited public information available about Positron, and historical records indicate the project has been inactive for an extended period. Recent price data and trading pairs are difficult to obtain. Its name and code can easily be confused with "Tron/TRX", so investors should carefully verify the target asset and information sources before making any decisions. The last accessible data on Positron dates back to 2016, making it challenging to assess liquidity and market capitalization. When trading or storing Positron, it is essential to strictly follow platform rules and wallet security best practices.
Backlog
Backlog refers to the accumulation of pending requests or tasks in a queue due to insufficient system processing capacity over a period of time. In the crypto industry, common examples include transactions waiting to be included in a block within a blockchain mempool, orders queued in exchange matching engines, and deposit or withdrawal requests awaiting manual review. Backlogs can lead to delayed confirmations, increased fees, and execution slippage.
Tge
Token Generation Event (TGE) refers to the moment when a project mints its tokens for the first time and introduces them into circulation. This milestone typically coincides with the initial trading, price discovery, and allocation of tokens to investors, team members, and the community. TGEs may occur through centralized exchange launches, decentralized liquidity pools, or airdrops, often accompanied by token lock-up and vesting schedules. The TGE determines the circulating supply, initial market capitalization, and token holder distribution—serving as the foundation for understanding tokenomics and participating in primary offerings or secondary market trading. Different approaches to TGE can affect price volatility and risk, influenced by factors such as liquidity depth, taxes and fees, and the pace of token unlocking.
Bitcoin White Paper
Bitcoin (BTC) is a decentralized digital currency that enables peer-to-peer transfers without the need for banks. Introduced by Satoshi Nakamoto in 2008 and operating as open-source software, Bitcoin relies on a public blockchain to record transactions. Its consensus mechanism utilizes proof of work, where miners compete to validate and add new blocks. The total supply is capped at 21 million coins. Users control their assets using private keys, and cryptography secures all transactions. Key use cases include store of value, cross-border payments, and portfolio diversification.

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