What is Presale?
Selling a token before it lists publicly, usually to raise money for a project.
Presales let projects fund development and let early buyers in before the public market. They are also where the majority of outright losses happen.
Common failure modes: liquidity that is never added, vesting that dumps on day one, and a team that disappears. Check the contract, the allocation and whether liquidity is locked.
Related terms
- Rug pullSecurity
A project that takes deposits and then removes the liquidity or dumps its own supply.
- VestingTokens
A schedule that releases tokens to a team or investor over time instead of at once.
- Honeypot tokenSecurity
A token whose contract lets you buy but blocks selling.