Finance has come a long way since bartering and exchanging goods and services. The way we exchange value and invest our money continues to evolve especially with the rise of cryptocurrencies. With the increasing popularity of digital currencies, crypto pre-sales are gaining momentum fast. A few years ago, we saw an influx of initial coin offerings (ICO), and now, we are witnessing many projects turning to crypto pre-sales to raise funds. In this article, we will explore the future of finance through new crypto pre-sales.
A New Investment Model
Crypto pre-sales are a new kind of investment model for many people. It presents an opportunity to be a part of a project at an early stage at a lower price than what the general public will eventually pay. This is quite similar to the way Venture Capitalists invest in companies they think are promising. By getting on board early, you stand to gain a higher return on investment (ROI) than if you wait to purchase the digital asset when it goes on sale on exchanges. Such pre-sales usually come with bonuses, discounts, or other incentives offered by the project to the participants.
Increased Transparency and Clarity
One significant issue that affected ICOs were scam projects that took people’s money and disappeared. Many investors lost their hard-earned money to such scams. With pre-sales, investors are typically dealing with companies already quite substantial, with a track record, and seemingly ready to launch a product. The beauty of crypto pre-sales is that they are backed by smart contracts on the blockchain, with all transactions recorded and easily accessible from anyone. This makes pre-sales transparent, clear, and accountable to the public.
Less Volatility
Unlike ICOs, which often offered tokens that were not yet listed on any exchange, pre-sales are better because they tend to have minimal market volatility. By getting in early, investors can participate in the growth of a project without the volatile swings that a currency would bring. In theory, when a project launches on exchanges, the token’s price does not experience significant volatility as those that participated in the pre-sale have already set a price floor that stabilizes the market around that point.
Increased Accessibility
One of blockchain technology’s most significant advantages is providing access to the unbanked population or those who cannot typically access traditional financial services. With crypto pre-sales, people from all economic strata can participate and invest as long as they have a reliable internet connection. This has increased the number of people able to invest in start-up projects, providing much-needed liquidity to innovative enterprises.
Legal Compliance
Regulatory compliance is an essential consideration for any blockchain project, and crypto pre-sales are no exception. These sales must meet the regulatory requirements of the jurisdiction in which they operate. The new sales model has shifted towards compliant investment models that allow the project and its investors to operate within the law. Secondary traded markets must meet regulatory guidelines as investment securities, and investors must participate in the pre-sales as accredited or qualified investors in certain jurisdictions.
Conclusion:
In conclusion, crypto pre-sales offer an innovative way for investors to get involved with projects early. The technology offers improved transparency, less volatility, increased accessibility, and better legal compliance. Crypto projects are finding pre-sales as a more secure way of raising funds than ICOs. As blockchain technology continues to grow and mature, new investment models such as crypto pre-sales will emerge, and the future of finance will continue to evolve.
