A Pre-ICO, or token presale (ICO Presale, Pre-ICO), is a preliminary round of distributing a project's tokens that is held before the official and larger ICO (Initial Coin Offering). The main goal of this stage is to raise the starting funding needed to prepare a full-fledged campaign.

Teams usually direct the funds raised at the presale toward marketing, paying developers and participants, and other organizational expenses associated with launching the main round. To interest early participants, tokens at the Pre-ICO stage are often offered on more favorable terms than during the main sale, since early backers take on heightened risks.

What is important to consider

Participation in early rounds of token sales is associated with notable risks: the project may be at the idea stage, without a working product. Before any decision you should carefully study the project's documentation (whitepaper), the team, the roadmap and the terms of the token sale. A high early discount is not in itself a guarantee of the project's success.