![comparison guide ICO vs Pre sale.png](https://cdn.steemitimages.com/DQmakWcB4TBBLA5oqexhAwaXTcTEnxEsCaMdi2outiihP5W/comparison%20guide%20ICO%20vs%20Pre%20sale.png) The world is chasing through the growing technologies. Among those, blockchain technology is more prominent. Cryptocurrencies are digital currencies that run on blockchain technology. Leaving the traditional methods of fundraising like IPO, you can easily raise funds through crypto crowdfunding. There are various types of crypto crowdfunding methods, such as ICO, STO, IEO, etc. Among those, ICO is the most prominent method. ICO is a crowdsale platform where the newly created tokens by the startups will be listed for the token sale. It is also a fundraising mechanism where you can initially raise more funds for your business. Based on the project’s value, the investor can raise funds in ICO. Recently, to add some benefits to ICO, pre-ICO was introduced. Most people confuse the difference between ICO and pre-ICO. Both are different stages of ICO. Pre-ICO will take place before the ICO stage. With the help of pre-ICO, more funds will be raised in ICO. Now, a question may arise in your mind: why should companies have both pre-ICO and ICO? The reason is that through pre-ICO you can quickly raise funds. A certain set of tokens will be sold at a discounted price in the pre-ICO stage. During pre-ICO, the startups can get new investors and the investor will get tokens at a low price. So, it is beneficial for both the startups and the investors. In this article, we’ll discuss ICO vs pre-sale in detail.

What is Pre-ICO?

Pre-ICO, as the name itself, indicates that it is the token sale that happens before ICO. In this stage, investors can purchase the tokens at a cheaper price but only a limited amount of tokens. Using pre-ICO, the startups can grab more investors and raise their funds quickly. The targets fixed for raising funds in pre-ICO will be lower. Some startups launch pre-ICO to pile up funds to compensate for the expenses of launching the main ICO. The pre-ICO actually happens before a month of the ICO. The span of pre-ICO will be very less when compared to ICO. Pre-ICO may sound good, but it’s not that much easy. During pre-ICO, tokens are offered to only limited investors and sometimes pre-ICO may complete in a second. So when the startup launches the pre-ICO, the investors can participate and buy their tokens.

Advantages of Pre-ICO

Tokens will be offered at a discounted price.

Through pre-ICO, the startup can get many new investors

Many bonuses will be given in pre-ICO like free access, a bonus card, etc.

Pre-ICO creates a great influence for ICO.

There are enormous profits for the startup and investors as well

What is ICO?

ICO is a popular fundraising mechanism where startups and entrepreneurs will offer new crypto coins or tokens in return for the funds raised by the investors. It is the equivalent method of initial public offering(IPO). ICO crowdsale happens after the pre-ICO stage. Interested investors will raise funds for the projects and according to the funds they raised, they will get the crypto token from the startup. For participating in an ICO, one should have a crypto token. The main advantage of ICO is there will be no intermediaries between the fundraising process of the startups and the investors. Therefore, there will be a direct connection between the startups and the investors alone.

Advantages of ICO

ICO has high liquidity

ICO is highly decentralized

ICO is open to all i.e whoever can participate in ICO

Every startup can fix the value for their own ICO

The launching of ICO is very simple so anyone can launch their very own ICO.

There will be less competition in ICO when compared to IPO.

You can raise maximum funds using ICO. So, there will be massive benefits for startups and entrepreneurs.

Differences between Pre-ICO vs ICO

![Screenshot from 2021-11-20 12-11-56.png](https://cdn.steemitimages.com/DQmVNcNjkya1bVxGyQ8B5qWnzmzKE9vy6PdfB9YdfonZjQq/Screenshot%20from%202021-11-20%2012-11-56.png)

Wrapping up

Most of the startups and entrepreneurs launch both pre-ICO and ICO for raising funds for their projects. Pre-ICO is the beta module of the crowdsale i.e ICO. So, the startups can attract many new investors for their upcoming projects. The tokens will be available at a bonus rate so that they will be highly profitable for the investors. Startups will also benefit from this pre-sale because of obtaining new investors. Both the startups and investors will benefit from pre-ICO and ICO. So, launch your ICO quickly by hiring an experienced team from a top-notch ICO development service provider from the industry. They’ll guide you with the development of pre-ICO and ICO for raising funds for your business quickly.