Public Sale Definition
A public sale in the context of crypto and blockchain refers to the process where a cryptocurrency project sells its native tokens to the general public. Often this comes after private sales, pre-sales, or initial coin offerings (ICOs). The sale provides a way for projects to raise funds for development and expansion while providing investors the opportunity to buy into the project at an early stage.
Public Sale Key Points
- A public sale refers to the selling of a cryptocurrency project’s tokens to the general public.
- It differentiates from private sales or initial coin offerings (ICO) where tokens are sold to specific investors only.
- Public sales are a popular fund-raising method for new projects.
- Investors in a public sale typically buy tokens with the hope that their value will increase over time.
What is a Public Sale?
A public sale is a significant event in the lifecycle of a cryptocurrency project. It’s a way for the project to raise capital by selling its native crypto tokens to the public. This usually takes place after the project has already gone through early funding rounds like private sales or presales, where tokens are sold to a limited group of investors.
Why are Public Sales carried out?
The primary reason for conducting a public sale is to raise funds. The crypto project may need additional capital to continue its development, expand its team, or implement its roadmap. Providing these tokens to the general public not only accomplishes these goals but also helps in building a community of users and enthusiasts around the project.
Who can participate in a Public Sale?
In most cases, any individual or entity that meets the project’s criteria can participate in a public sale. These criteria often include being of legal age, passing KYC (Know Your Client) checks, and living in a jurisdiction where purchasing the tokens is legal. In many instances, interested participants need to register beforehand and be whitelisted.
Where does a Public Sale take place?
Public sales mostly take place on the project’s website or on designated platforms that have been selected by the project team. These platforms usually provide the necessary infrastructure for the sale, including wallet services and KYC checks.
When does a Public Sale occur?
A public sale typically occurs after the private sale but before the token gets listed on any major exchanges. The timeline may see variations based on the project’s development and legal considerations.
How does a Public Sale Work?
During a public sale, the project will set a certain number of tokens for sale and a price per token. Investors can then buy these tokens, usually with popular cryptocurrencies like Bitcoin or Ethereum. The sale continues until all tokens are sold or the sale period ends. After the sale, the tokens get distributed to the investors’ crypto wallets.
