If you are new to the NFT space then you are probably asking, what on earth are NFT presales and public sales? I understand a large number of NFT terms can be confusing.
But rest assured, In this article, I will be explaining these two terms and outlining the difference between them. So without further ado, let’s jump right in.
What’s the difference between an NFT presale and an NFT public sale?
Essentially, an NFT presale is an opportunity for buyers to get access to NFTs before mint. This is usually reserved for loyal community members and investors. On the other hand, an NFT public sale is the industry standard whereby NFTs are purchased at launch. Anyone can purchase an NFT at this stage.
NFT Presales
As mentioned previously, presales allow investors to purchase NFTs before the initial token offering. They are usually invite only while being reserved for investors and loyal community members.
Although risky they provide fantastic investment opportunities as you get early access to the project. Platforms usually reward investors with bonus tokens and if you find a reputable project the price is usually significantly lower than mint.
That being said, presales are inherently more risky as the project has not finished development which can often lead to smart contract bugs and hacks. That is why it is important to exercise due diligence.
If you want to learn more about how to get guaranteed access to a project ahead of launch? Click here to check out my article on NFT whitelists.
Public sales
Public sales are the standard sale whereby anyone can purchase an NFT at launch. NFTs are usually released to the public and they compete to mint.
The benefit of this launch is that it’s less risky as the development of the project has finished. That being said, this type of launch often leads to high gas fees and extreme price volatility at the point of sale.
Benefits of Public sales
Less stringent KYC – during public sales users are not required to disclose their identities. Therefore, investors can remain anonymous.
More reliable – at launch the NFT that is released is a finished project. As opposed to a presale it is not based on promises. In turn, investors know what to expect and the likelihood of smart contract bugs and hacks is significantly lower.
No lockup period – unlike some presales, public sales don’t have a lockup period. Investors are free to sell their NFT anytime after purchase.
Benefits of presale
Funding – NFT presales provide much-needed funding for new projects. This helps new projects with development while also rewarding the community in return.
Democratic – presales provide a more democratic experience. Community members are often rewarded with tokens instead of bots and scalpers.
Generates buzz – projects often use presales as a way to garner attention towards the project ahead of the public offering. This can be in the form of giveaways and promotions or through organic social media discussions.
Avoids gas wars – during NFT public launches there is usually a spike in high transaction fees (gas) as a large number of people bid up the price to mint and NFT faster. Presales circumvent this by allowing people to mint over an extended period.
How to get access to presales?
- Find the project early – presales are often first come first serve. That’s why it’s important to find the project early. The best place to search is crypto Twitter. Follow discussions in the space and keep an ear to the ground. Once you have joined the project you can join the discord and telegram chats where key announcements take place.
- Follow the presale steps – this varies from project to project. Usually, they require certain credentials. For example, having a large social media presence or being a qualified investor. They may also require you to fill out a KYC form. This will detail your identity.
- Competitions and sharing – NFT projects want recognition ahead of launch. Many of them only provide sales to members who follow, share and retweet. So be active in the community and you might get a spot. Also, they often incentivize this behavior by holding competitions. This could be through giveaways or through providing cool artwork.
- Hold an NFT from a previous drop – increasingly projects are granting presale access to existing NFT holders. This is probably the easiest way to get access before the public launch. One notable example of this is the Solana projects DeGods. NFT holders got airdropped a guaranteed spot for the upcoming y00ts launch.
Final thoughts
Overall, public sales are what most people are familiar with. Anyone can access them at it usually comes with less risk as the project has finished development. On the other hand, presales allow investors to purchase NFTs early which provides tremendous investment opportunities but with added risk.
At the end of the day, both sales have their uses and it’s important to do your research. I hope you found this article useful and thanks for reading.
Want to learn about bitcoin NFTs? Click here to read my previous article.
