Pre-IDO Stages: Preparing for Crypto Token Sales

Pre-IDO is the offering of tokens before the actual initial placement on DEX (IDO). This concept allows DeFi users to be introduced to new and promising crypto projects. Pre IDO also allows DeFi projects to increase their fundraising capacity regardless of market movements.

What is Pre-IDO?

Pre-IDO refers to projects that offer coins or tokens before an initial offering on the DEX (decentralised exchange), more commonly referred to as IDO. Pre-IDO only offers tokens to a select group of investors, while pre-IDO gives everyone the opportunity to invest in new DeFi projects.

IDO is one way to raise funds for a project, but market conditions also play an important role in the price of tokens. With pre-IDO, developers raise funds regardless of market volatility. The tokens offered on preIDO are future unlocked tokens. All tokens are supplied with a locking period determined even before the launch of preIDO. The token is unlocked only after the locking period expires.

Pre IDOs offer more democratic access to investments and a relatively high price benefit compared to IDOs. There is also a lock-in period and investors get instant access to liquidity after listing.

Benefits of Pre-IDO

Pre-IDO offers all users the opportunity to explore venture capital-style financing activities. Venture capital firms and institutional investors with millions of dollars typically invest in such projects. They get an advantage first and enjoy a much lower price than IDO. The token price for public IDO rounds is usually predetermined and higher than for seed and private funding rounds.

Individual investors have the opportunity to invest in and buy project tokens at private investor and venture capital company level rates through pre IDOs. This gives them a first mover advantage and a price advantage over buying tokens during a public IDO.

The concept of a pre IDO also works in favour of developers. Projects have the opportunity to raise funds and increase their potential by organising a pre-IDO. In addition, a pre IDO allows developers to get sufficient funding for a project regardless of the ups and downs of the market, allowing them to fully focus on product development.

The co-founder of Convergence, the first decentralised interchangeable asset protocol, is Oscar Jung. He has more than a decade of experience in blockchain, tokenisation and venture capital.
Oscar is a partner at venture capital firm EONXI, investment firm DAO Ventures and leading blockchain and cryptocurrency company Liquefy.