Public Sale Key Points
- A Public Sale is a process in which a company, typically a start-up, sells its tokens to the general public.
- It’s often used as a fundraising strategy in the cryptocurrency and blockchain industry.
- The public sale usually follows a private sale, where tokens are offered to select investors or partners.
- Participants in a Public Sale are usually required to register and undergo a Know Your Customer (KYC) process.
- The success of a Public Sale can heavily influence the future prospects of a blockchain project.
Public Sale Definition
A Public Sale, in the context of cryptocurrency and blockchain, refers to the sale of blockchain tokens to the public as a means to raise funds for a project. This fundraising strategy is often used by blockchain start-ups to kick-start their projects.
What is Public Sale?
A Public Sale is a type of crowdsale where blockchain-based tokens are sold to the general public. It is a common method of fundraising used by start-ups in the crypto and blockchain industry. These tokens, also known as digital assets, represent a form of utility or stake within the blockchain project.
The Public Sale phase usually follows a private sale or pre-sale, where tokens are sold to early investors, partners or stakeholders at a discounted rate.
Who Participates in a Public Sale?
Anyone interested in the blockchain project or in acquiring the token can participate in a Public Sale. The participants, often referred to as retail investors, range from individual investors to institutional entities. However, they are usually required to register and complete a KYC (Know Your Customer) process to participate.
When and Where Does a Public Sale Take Place?
The timing of a Public Sale is decided by the project team and it usually takes place after a successful private sale or pre-sale. It can last for a few days to several weeks, depending on the project’s fundraising goals.
Public Sales typically take place on a dedicated platform on the project’s website or on a third-party platform specializing in token sales.
Why Do Companies Conduct a Public Sale?
Companies, especially start-ups, conduct Public Sales to raise funds for their blockchain projects. The funds raised are typically used for development, marketing, operations, and other project-related costs.
A successful Public Sale also helps to distribute the tokens widely, increase project visibility, and build a community of supporters around the project.
How Does a Public Sale Work?
In a Public Sale, the company sets a specific amount of tokens for sale and a price per token. Interested participants can purchase these tokens during the sale period. The tokens are usually sold for popular cryptocurrencies like Bitcoin (BTC) or Ether (ETH).
Once the sale period ends, if the minimum fundraising goal is met, the tokens are usually distributed to the participants. If the minimum goal is not met, the funds are typically returned to the participants.
