Glossary

Public Sale

Moderate

A public sale is the final stage of an ICO in which a company offers its token to the public at a significant discount before the token is listed on cryptocurrency exchanges.

What Is a Public Sale?

In the blockchain world, the public sale is a term used when a company/project makes their tokens/coins available to the general public, (mostly) before the token is listed on cryptocurrency exchanges.

It has become a trend in the cryptocurrency market for blockchain companies to sell specific tokens or coins of a specific project and then launch their platform or app with the capital raised from the sales. This phenomenon is known as an ICO, and it is similar to next-generation crowdfunding.
The main concept behind an ICO is the ability to offer crypto tokens to investors and sell them in exchange for cryptocurrencies, such as Bitcoin or Ethereum. Participants can sell or trade their assets at 3 or even 100 times the original price on all cryptocurrency exchanges.

The ICO is generally divided into three stages:

  1. Private sale

  2. Pre-sale

  3. Public sale

To participate in all three phases, simply do the following: 

First, convert fiat to cryptocurrencies, such as ETH or Bitcoin. Place it on your blockchain wallet. Participate in the initial coin offering (ICO) and finally secure your new tokens.

Most of the token sales these days actually occur on the Ethereum blockchain, using a smart contract to collect Ethereum tokens and instantly swap them for a new token issued by the startup. There are no exchanges or brokers involved, thus this is totally peer-to-peer.

The ICO begins with a private sale in which select people who align with the ICO goals are chosen and can purchase tokens before the tokens are available to the general public. Then they proceed to the presale, which is an exclusive "early bird" opportunity for people to purchase coins before the ICO is made public.

The presale period is an effective way for companies or projects to accumulate fund and use it to launch an effective marketing campaign before the project or app is fully launched. For investors, it is a good way to get a higher discount or bonus than a crowd sale while avoiding the drawbacks or risks that may occur during a private sale. 

The ICO crowd sale, also known as the public sale, is the most important stage in the ICO's journey to success, so it is promoted and advertised more widely than the presale. Because it is one of the final stages of the token sale, it is possible to avoid the downsides or risks that may occur during a private sale. 

However, there are fewer bonuses or discounts available than during the presale or crowd sale periods. The bonus and the discount system greatly depend on the number of investments people are willing to make, the offers can be similar to the private and presale campaigns.

Advantages include:

  1. One can predict the ICO result at the public sale based on the previous two campaigns.

  2. The project at this stage also has a minimal risk because it is more developed.

  3. Greater liquidity, because there is less time to trade the token.
  4. There is lesser scope of crypto volatility that affects the price of the cryptocurrency. 

Some tradeoffs can be:

  1. Lower discounts compared to the presale period.

  2. There is a possibility of a lower maximum cap per investor.

  3. Chances are that the public sale can be called off on the occasion of the tokens being sold out during the presale period.

  4. There are chances of token dump when bought at a discount.