Token sale stages
Token sales are usually divided into multiple distinct stages:
- Registration for a whitelist and KYC
- Pre ICO
- Private Sale
- Public Sale
- Bounty program
Each stage of a token sale structure if different and may grant different bonuses to investors.
Registration for a whitelist and KYC
A whitelist is, in essence, a list of persons who will be granted permission to participate in a token sale. It is important to note, however, that even though in theory only those investors who registered in the whitelist have the right to invest during a token sale, this rule is usually skipped entirely and everyone is allowed to participate.
KYC or Know Your Customer / is an Anti-Money Laundering procedure that is required to confirm that the funds of an investor were earned legitimately. Almost all reliable projects have a mandatory KYC.
Pre ICO or ICO Pre Sale
Pre Sale is, or a Pre ICO is a crowdfunding event that may take place before the main token sale stage. Often Pre ICO is used to accumulate the necessary funding to cover expenses of the ICO. As a rule of thumb, Pre ICO investors can purchase tokens at a lower price or, in other words, with a higher bonus compared to the ICO investors.
Private sale is a closed round of crowdfunding that may take place before the main ICO. Ordinarily, Private Sales offer significant bonuses for engaging investors, who are picked for participation. However, although Private Sales are generally more profitable for investors, they also come with increased risk, since there is no guarantee that the later token sale will be successful.
Bounty programs are incentives given to a wide range of participants for several actions related to token sales. Usually, participants are rewarded with tokens for completing tasks, such as making social media reposts, leaving comments and, sometimes making translations. People who participate in bounty programs professionally are called “bounty hunters”.