What is Public Sale? Benefits of Public Sale

Public Sale is the stage where a cryptocurrency project expands its community by selling tokens to the public. This is an important step in the development of the project. But what are the benefits of Public Sale for both investors and the project?

This article will help you better understand the role of Public Sale in the cryptocurrency market. Let’s learn more with AZCoin to make wise investment decisions.

What is a Public Sale?

Public Sale, also known as public sale or crowd sale, is the process of releasing new coins or tokens to the public before listing on cryptocurrency exchanges. This is the final stage of the token issuance, similar to ICO, IEO, IDO but with the main difference of expanding the opportunity for the public to participate in purchasing.

Public Sale forms

There are several common forms of Public Sales that projects often use:

• Initial Coin Offering (ICO): This is a form of raising capital through the initial issuance of tokens. Users can buy tokens directly from the project’s website or through the project’s pre-sale.
• Initial Exchange Offering (IEO): This form is done through cryptocurrency exchanges such as Binance Launchpad. Tokens sold on the exchange will usually be listed on that exchange.
• Initial DEX Offering (IDO): Done on decentralized AMM platforms, IDOs have become prominent during the DeFi boom.
• Launchpad Platforms: Some projects use third-party launchpad platforms to raise capital and issue tokens. These platforms can be Starship, DAO Maker or Tokensoft.

Public Sale process

To better understand Public Sale, let’s explore the process of an ICO, which is one of the most popular forms of Public Sale:

• Private Sale: This is the first stage in the fundraising process, where investors are carefully selected by the project. These investors usually receive the most preferential price and are the first group of people to have the opportunity to invest in the project. This stage is usually done through smart contracts on blockchains such as Ethereum.
• Pre-Sale: After Private Sale, the project often organizes a Pre-Sale to attract more capital before the public sale. The price of tokens in Pre-Sale is usually higher than Private Sale but still lower than Public Sale. This is an opportunity for early investors to get a better price before the public sale begins.
• Public Sale: This is the final and most public stage of the fundraising process. Tokens are sold to the public at a set price. Public Sales are usually held on trading platforms such as Liquid, Tokenomy and Coinbase. The goal of Public Sales is to raise large amounts of capital from the community and create opportunities for many investors to participate in the project.

Benefits of Public Sale

• Project risk: Not all projects are successful. Some projects may fail to meet their goals, or may even be scams. Therefore, it’s important to thoroughly research the project before participating.
• Price increase potential: Although it’s possible to purchase tokens at a discounted price during the Public Sale, the token price when listed on the exchange may not increase as expected or may decrease sharply.
• Easy to predict results: Based on the results from previous stages, investors can easily predict the potential success of the Public Sale. If the project has attracted interest during the private and pre-sale stages, this is usually a good sign for the success of the Public Sale.
• Create early investment opportunities: It’s crucial to acknowledge that not all projects succeed; some may fail or even turn out to be scams. Thorough research and choosing best crypto exchanges 2024, such as AZcoin, are essential steps in mitigating these risks.

Risks to be aware of when Public Sale

While Public Sale offers many benefits, it also comes with some risks and challenges such as:

• Risk of scams: Many low-quality or fraudulent projects may use Public Sales to raise funds from the public without a clear development plan.
• Price volatility: After the token is listed, the price can fluctuate greatly, which can pose risks to investors who buy tokens in the Public Sale.
• Limitation on the number of tokens: Some Public Sales may place a limit on the number of tokens each investor can buy, which may reduce the opportunity for some people who want to participate.

The Future of Public Sale

Public Sales are seeing a strong resurgence in 2024, with the amount of capital raised by projects increasing again. Launchpad platforms and formats such as IDOs and IEOs continue to play an important role in raising capital for new projects. 

Major blockchains such as Ethereum, BNB and Sui have attracted significant interest from the investment community through Public Sales. Platforms such as Coinlist and Starship are also thriving, providing many opportunities for projects and investors.

Conclusion

Hopefully, the above article has helped you better understand Public Sales and the benefits and risks associated with participating. Public Sales are not only an opportunity for projects to raise capital, but also an opportunity for investors to buy tokens at a preferential price and participate in the development of blockchain projects.