The crypto industry has never been short of hype. Every few months, a new buzzword, narrative, or trend emerges — sparking excitement, speculative frenzy, and countless debates. First, it was Bitcoin’s potential as “digital gold.” Then came Ethereum and the rise of smart contracts. We witnessed the ICO boom of 2017, the DeFi summer of 2020, the NFT mania of 2021, and more recently, the surge of AI tokens and meme coins.
But through all these cycles, one constant remains: the obsession with getting in early.
This is where crypto presales come in. They dangle the ultimate dream — buying into a project before it’s listed on exchanges, before the mainstream hears about it, before the price explodes. The promise is intoxicating: “Be among the first, and you could turn a few hundred dollars into life-changing wealth.”
Yet, for every presale that turns into a massive success story, there are dozens — if not hundreds — that collapse into nothingness, taking investor funds along with them. Some are outright scams. Others simply fail to deliver.
So, what’s the truth? Are crypto presales a smart way to get in early, or are they just an elaborate trap for the unwary? Let’s take a long, hard look.
At its core, a presale is just what it sounds like: tokens sold to early backers before they’re made available to the public on major exchanges.
Presales often come in multiple stages:
In return, projects raise funds they need to build out their product, hire teams, and market themselves. For investors, the deal is simple: buy low, sell high.
Presales exploded in popularity during the ICO boom of 2017, when startups raised billions with nothing more than whitepapers and slick websites. Some delivered. Most didn’t.
Today, presales are back in vogue — often launched via launchpads like Binance Launchpad, Polkastarter, or DAO Maker, which aim to add a layer of credibility. But the same fundamental question remains: are you early enough, and will the token hold value?
Why do presales attract such intense interest? The answer lies in psychology.
Crypto is built on FOMO. Every presale taps into the investor’s biggest fear: “If I don’t buy now, I’ll miss the next Bitcoin, the next Ethereum, the next Solana.” The lure of massive gains compresses rational decision-making.
Presales are framed as moonshot opportunities. The pitch is rarely about steady, 20% annual growth. Instead, it’s “100x potential,” “the next Shiba Inu,” “don’t miss out.” For many, a $500 gamble seems like a fair trade for the chance of life-changing returns.
Presales often create a sense of scarcity and exclusivity. Whitelists, limited allocations, and early-access groups foster the feeling of being an insider, part of something secretive and elite.
We’ve all heard the tales. Ethereum presale participants bought ETH at $0.30. By 2021, it was worth over $4,000. Early Solana buyers saw 1000x returns. BNB, launched at $0.10 in 2017, now trades in the hundreds. These anchors keep investors glued to the idea that “this presale could be the one.”
Presales can and do create winners. Let’s examine a few:
These cases feed the presale frenzy. They show that massive wealth creation is possible — but they’re also the exceptions, not the rule.
For every Ethereum, there are countless failures.
During the ICO boom, projects raised over $20 billion. By 2018, most had either disappeared or delivered worthless tokens. Retail investors were left holding the bag.
Riding on Netflix’s Squid Game popularity, SQUID skyrocketed before crashing to zero in a rug pull. Investors couldn’t even sell due to built-in restrictions.
A textbook Ponzi scheme, BitConnect lured thousands with promises of guaranteed returns. It collapsed in 2018, erasing billions.
The majority of presales don’t end in dramatic rug pulls. Instead, they just… fade. The team stops updating. The community dries up. The token slowly bleeds to near zero.
The truth is sobering: most presales fail.
The failure rate is staggering, and the reasons are consistent:
While no method is foolproof, smart investors look for these signals:
Equally important is knowing what to avoid. Watch out for:
Authorities are paying attention.
The future of presales will likely be shaped by regulation. Over time, they may resemble IPO-like events with clearer disclosure and compliance. Until then, presales remain a high-risk Wild West.
I’ll be honest: I’ve dabbled in presales. Some small wins, a few painful losses. The biggest takeaway?
For me, presales are fun side bets, not core investments. My serious capital goes into projects with proven track records and long-term value, not hype-driven launches.
If you want exposure to early opportunities without all the risk, consider:
So, are crypto presales a smart way to get in early or a total trap?
The truth is: both.
The difference lies in due diligence, risk management, and mindset. If you view presales as entertainment, a gamble, or a high-risk lottery ticket, they can be exciting. But if you treat them as safe investments, you’re setting yourself up for disappointment.
Crypto presales will always tempt investors with dreams of fortune. But remember: in this space, not all that glitters is gold. Sometimes, it’s just another cleverly marketed trap.
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Crypto Presales: Smart Way to Get in Early or Total Trap? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.
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