Public Sale

What is a Public Sale In Crypto?

Ever heard of a public sale but you are not sure of what that could mean in the crypto world? Well, you are not alone. Public sales are some very essential step for new cryptocurrency projects. Knowing them will open ways to exciting investment opportunities. Imagine a startup chock full with some groundbreaking blockchain idea. They need to develop their project, be it an app or some new digital payment system.

Public sales are how they raise money from the general public. This is a little like crowdfunding, except that instead of getting some product or service, you get tokens. The tokens might give you access to features of the project, or they might later be traded on cryptocurrencies exchanges.

Think of tokens as digital keys, each going to open multispectral functionalities in a given undertaking. They may grant voting rights, exclusive features, and service discounts to their holders.

Before the public sale begins, there will be a private sale. Here, access is granted to only a few investors—the angel investors or venture capitalists—who can buy tokens at perhaps a lower price.

Now, with public selling, it's climb-aboard time. A number of things one needs to keep in mind are: Do your research! Not all projects are made equal. Know the meaning of the project and who is working on the project before investing and, also, know the associated risks. Certainly, public sales are one of the excellent ways to invest early, but one has to remember, cryptocurrencies are inherently volatile. Only invest what you can afford to lose.

Mastering public sales allows one to dive deep into the fabulous world of crypto-projects, being part of the next big innovation. Keeping in mind, however, that one needs to be careful with any investment and be open-mindedly curious.

How does a public sale differ from a private sale?

Investing in the exciting world of cryptocurrencies often involves Initial Coin Offerings (ICOs). But within an ICO, there can be two distinct fundraising stages: public sales and private sales. Each caters to a different audience and offers unique advantages and considerations.

Public Sales: Open Doors, Open Market

Public sales are all-inclusive events. Anyone with an internet connection can participate and potentially purchase tokens at a discounted price compared to when they hit exchanges. This "democratizes" investment, allowing a wider pool of people to get involved in promising new projects. The upside? Increased funding for the project and a chance for you to snag tokens at a potentially lower price. The downside? More competition for those tokens, and the project itself might be younger, carrying more inherent risk.

Private Sales: Exclusive Entry, Early Access

Private sales are exclusive gatherings for a select group of pre-approved investors. These might be venture capitalists with significant financial resources or angel investors known for their keen eye for spotting groundbreaking ventures. By securing funds early from established backers, the project gains not just capital but also potentially valuable guidance and support from experienced players in the industry. Investors in a private sale might benefit from even lower token prices than the public sale and the chance to be among the first supporters of a revolutionary project. However, private sales come with limitations. Access is restricted, often requiring accreditation or a proven investment track record. Additionally, minimum investment amounts might be higher, shutting out some potential investors.

Choosing Your Path: Public or Private?

The decision between a public sale and a private sale depends on your individual circumstances and risk tolerance. Public sales offer wider access and potentially lower entry points, but competition can be fierce. Private sales might provide access to earlier investment opportunities and potentially lower prices, but come with stricter requirements and potentially higher minimum investments.

Remember: Regardless of the sale type, thoroughly research any project before investing.

What Are The Benefits Of Participating In A Public Sale?

Public sales have emerged as one of the most popular ways for investors to get involved in new cryptocurrency projects. There are several reasons for this appeal:

Discount Entry Point: Public sales often offer tokens at a lower price than they will be listed on exchanges later. You can buy in early and benefit if it's a successful project.

More Accessibility: As a rule of thumb, public sales are more accessible by a larger pool of investors in general, as compared to private sales, which are predominantly offered to accredited investors, or in some cases, venture capitalists only. This, therefore, allows more people to participate in the potential growth of some exciting new ventures.

Potential for High Returns: Like every investment, it always carries some risk with it. However, should the project catch on and the token value appreciate, then you can end up making some good returns therefrom.

Remember to do your own diligence before investing in any public sale. Diligently research the technology, team, and roadmap to have a better idea of potential risks and returns.

Participating in a Public Sale with Staria Launchpad

Participating in a sale on Staria Network involves a structured process with three phases: Guaranteed Allocation, FCFS, and Allocation Draw. This structure ensures that all participants have a fair chance to invest while offering exclusive benefits to Genesis and Genesis+ subscribers. Here's a breakdown of the steps involved:

1. Do Your Research: This is paramount. Deep dive into the project's details on the project’s page on Staria and check their website, whitepaper, mvp and social media presence. Staria Launchpad emphasizes secure and transparent projects, so this aligns perfectly with their ethos.
2. Find the Public Sale Details: Once you're confident about the project, check Staria's platform for specific sale details. Look for information like the date, duration, accepted currencies. 
3. Prepare Your Funds and Wallet: Ensure you have the necessary funds in a suitable crypto wallet. Double-check the project's requirements and choose a reputable crypto wallet that supports the specific token being offered.
4. Participate in the Sale: When the public sale opens on Staria's Launchpad, follow the instructions to connect your wallet and complete the purchase. 
5. Stay Informed: After the sale, keep yourself updated on the project's progress through Staria's communication channels. Track the token's performance on exchanges (if applicable). Remember, the public sale is just the beginning, and the project's long-term success will determine your investment's value.

What Are The Risks Associated With Public Sales?

Public sales are, in most cases, very engaging when it comes to cryptocurrencies. On the other hand, like any kind of investment, it's wise to thoroughly understand what one is getting into before investing. The following are reframed key considerations:

Market Volatility: A token's price action is subject to market volatility and public sentiment. Launch timing is an important consideration even if a project looks promising. Market dynamics greatly influence a token's price action at launch.

Scam Potential: Unfortunately, fraud exists in the ICO space. Always do your research before investing in any project. Look for red flags such as too-good-to-be-true promises or insufficient clear information about the team and technology behind a project.

Project Uncertainty: Most of the public sales are of new and unproved projects. There is always a possibility that a project may fail, causing an investment to be lost.

Lack of Liquidity: Publicly sold tokens might not be easily tradable in an exchange after the sale, making it hard to divest your investment should you want to cash out.

Regulatory Landscape: The regulations surrounding cryptocurrency ICOs are still evolving, which might cause some investor uncertainty in the project.

Take Control: How to Deal with Risk

Think investment in a public sale is still too opaque? Try the following to be a savvier investor:

Deep Research: Read the project's documentation, understand who is behind it, and the technology and team backing it.

Stay Informed: Keep yourself updated with the recent news and development in the world of crypto.

Public sales could be very good to get involved with in a new promising project. However, mind that investment always caries risk. Be prepared to be informed about the worst pitfalls, and in doing so, be able to handle them and make better decisions with the preparations of getting into public sales.

Tips for Participating in a Public Sale

• Research the Project Thoroughly: Before you invest, take the time to understand the project's concept, team, roadmap, and whitepaper. Look for a legitimate project with a strong team and a well-defined purpose.
• Only Invest What You Can Afford to Lose: Remember, public sales are high-risk investments. Only invest what you can afford to lose completely.
• Consider the Regulations: ICO regulations vary depending on your location. Be sure to understand the legal landscape before participating in a public sale. The SEC (Securities and Exchange Commission) in the US has specific guidelines around ICO offerings. Staria is compliant with the local Swiss laws. We are affiliated to SO-FIT and also have presented our project in detail to the FINMA, who is in charge of regulating the financial services in Switzerland.

Locking In Long-Term Commitment in Public Sales

Public sales are very critical processes that any new cryptocurrency project can engage in during their initial coin offering process. However, what becomes more intriguing about this process is how they take good care of these tokens, having received them in a public sale: Vesting Periods.

What Are Vesting Periods?

• A vesting period is a pre-set period in which an investor will be slowly able to fully access the tokens they have purchased. Think of it as a surefire way for the project's team to incentivize long-term commitment from the public sale participants. Tokens are not immediately available in your wallet; instead, they are released in stages over a set period.

How Does the Vesting Period Affect an Investor's Public Sale?

Vesting periods might have numerous effects on the investor in a public sale, such as the following:

• Lesser Risk for projects: Distributed over time, token vesting thus discourages early dumps, wherein the investors might tend to sell off their entire holdings in the token just right after the public sale and thus crush the token price. This allows for a smoother launch with more stable price discovery taking place on the exchanges.
• Alignment of Interests: Vesting periods help encourage the investor to hold the token for a longer term and are thereby generally enforced when the project seems to captivate and be in the best interest of the investor.
• Gradual Access to Liquidation: Investors do not get hold of their entire tokens immediately; rather, they get a fraction of them at predefined intervals, which means they potentially manage their investment and participate in a market as the project unfolds.

Understanding Vesting Periods Before You Invest

People should be aware of the specifics of a project's vesting schedule before taking part in a public sale. In most cases, this information can be found in the white paper of a project or at the public sale's details page. The vesting periods range widely but can be for a duration of some months to a number of years.

This lets you know when vesting occurs so you can decide if a public sale would be congruent with your goals of investment and relatively acceptable level of risk.

Transparency and Investor Protection

Staria Launchpad puts the maximum effort into picking the projects on the site while making sure, for each public sale, that the vesting schedules are transparent—helping you have confidence in the amazing world of public sales with well-informed investment decisions.

How does token price volatility impact public sale investments?

The cryptocurrency market is notorious for its volatility. That means the price of your tokens after a public sale can be both sudden and impressive, both up, and both down. How much a new cryptocurrency is worth is defined by factors that include:

• Adoption and development of the project: Does the project deliver what was promised, and what is the adoption rate in the overall blockchain ecosystem?
• Market Sentiment: Market sentiment, most notably in cryptocurrency, is a significant driving force that leads to individual token prices.
• Trading Volume: The amount of coins being traded on exchanges at the moment determines the price.

Impact on Public Sale Investors:

This inherent volatility can significantly impact public sales investors:

Maximum Return Potential: Now, while there is a possibility that the said token goes to the moon in price after public sale, making you a huge bag of profit, the complete opposite is possible. The value might crash, leading to a significant loss of your initial investment.

Short-Term vs. Long-Term Strategy: Investors might rue the day of the public sale because of periods of price fluctuation if they had been looking to get a quick return. Generally, the long-term perspective usually takes a focus on the ability of the project to grow and get adopted.

Staria Launchpad appreciates all the risks involved in public sales and places an investor's education first. As of now, we focus on projects with good fundamentals and those with great long-term potential, allowing our community to get the information they need—information regarding tokenomics and volatility—while making decisions as they pave their way through the ecosystem of public sales.