Now that the crypto market is recovering from its 2022-23 bear phase, there’s a growing interest in the upcoming presales. New technological trends, as well as the general uncertainty spilling over from traditional markets, are making alternative assets more attractive than ever. However, there are certain things to be aware of when making an early investment. In this article, we’ll cover everything you need to look for in a presale token.
Important Factors in a Presale
If you’re jumping straight in, the market can be quite overwhelming. If you want to make an informed choice without having to learn all the ropes, a curated list of top upcoming crypto presales will certainly come in handy. However, if you want to do some deep research on your own, here are the things to look out for:
Founders and Team Transparency
Having information about the founding team out in the public is always a good sign. Make sure to check out the members on LinkedIn and GitHub and review their project history. If the team members are verifiable and presented with a clear dev roadmap, that means the project shows promise.
Tokenomics
Although it can get overlooked easily, it’s very important how token allocations are balanced and scheduled. Seeing over 50% go to “marketing purposes” should raise suspicion, so make sure to look for schedules that prevent team dumps.
Product Utility
Seeing what the market fit is can be a real game-changer for a token that has not gone public yet. If the token is more than just a gimmick and actually has a function, that’s always a good sign.
Security and Smart Contract Audits
Another important check on the list is having public audits from independent third parties. If a token is certified by reputable auditors (e.g., Certik, SolidProof) with public disclosures, you can have more confidence in the future and safety in the long run.
Community Traction
Seeing a lively and active community holds weight in the world of crypto. Keep in mind that the sheer number of followers is less important than high-quality engagement. If there’s a subreddit or a Twitter/X account around which followers gather for discussion, it’s a sign that the token is something to look forward to.
Partnerships and Launchpads
Seeing a crypto project partner up with a reputable venture capital investor usually means that they have passed some rigorous checks and show serious potential. Big players joining the fray are a signal of trust and capability for executive action without disruption of plans and schedules.
Macroeconomic Drivers Behind Presales
Seeing the wider, global picture is also important when considering what new crypto trend to invest in. Countries that are facing high inflation are traditionally a very eager audience for new alternative currencies. Devaluation crises and capital control are the usual drivers for wider populations looking into non-traditional finance. The situation in Argentina is a good example. The ongoing battle against inflation under Milei’s administration is making crypto presales very attractive to retail investors. In this way, they can seek outsized returns outside traditionally established economic systems. The appeal of cryptocurrencies is in their borderless nature. Decentralized and nominally tied to USD or related stablecoins, it presents a lucrative alternative to volatile fiat environments. These factors might not be directly tied to presales themselves, but they do present an important part of the market atmosphere that can’t be overlooked.
Major Red Flags
Finally, some warning signs are almost certainly showing that the project should be avoided. If you notice some of these during the research phase, choosing another, safer token is probably a good idea.
- Anonymous developers: If the project fails or disappears, there is zero accountability to the investors.
- No smart contract audit: Shows that there might be hidden backdoors or rug-pull functions that can drain funds quickly on command.
- Exaggerated roadmaps: Projects sounding too good to be true should be avoided. Too many buzzwords and a lack of timelines are certain signs of vaporware.
- No token lockups: If the developer team can dump tokens on buyers at any time, it might happen very soon after launch.
- Overhyped marketing: Influencer shills are paid to promote low-quality projects that offer little or no long-term value.