Understanding Private Sales And Their Advantages

Understanding of private sales in cryptocurrency: unlocking of the potential for exclusive offers

The world of cryptocurrency has recorded rapid growth and adoption in the last ten years, with thousands of new projects that emerge every year. While many investors have turned to cryptocurrencies listed on the stock exchange such as Bitcoin (BTC) Ed Ethereum (ETH), others are opting for alternative models that allow private sales and exclusive offers. In this article, we will deepen the concept of private sales in cryptocurrency and explore their advantages.

What is a private sale?

A private sale, also known as the sale of only invitations, is an exclusive offer in which only certain individuals or groups can participate. Unlike public sales, which are open to anyone in exchange (e.g. coinbase), the limit of private sales access to those who have been pre-approved by the issuer. This model allows greater control over the sales process and allows issuers to create a targeted investor base.

Advantages of private sales

• Increase in control : by limiting access, broadcasters can better manage their investments and maintain confidentiality, which is particularly important for sensitive or high risk projects.

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• improved safety : Since only pre-approved people receive access, private sales reduce the risk of insider trading and other forms of market manipulation.

• Reduced commissions : broadcasters can avoid paying the platform commissions or other external services required for public sales, since they have complete control on the sales process.

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Examples of private sales of success

• Tether (USDT)

  : Tether’s private sale in 2017 collected $ 120 million from accredited institutional investors and customers, with the proceeds used to buy US dollars for a secondary market list on Bitmex.

2 The sale generated $ 160 million in funding, which were subsequently converted into USDC token (Terrausd).

• FANTOM (FTM) : Fantom’s private sale in 2020 collected $ 200 million from high network institutional customers and customers, with the proceeds used to develop the project.

Best Practice for private sales

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• Establish a robust verification process : issuers should implement a complete background control system to verify the identity and legitimacy of investors.

• Providing detailed documentation : issuers should provide complete budgets, tax relationships and other documents relevant to investors.

• Maintain transparency : regular updates on the progress of the sale and any problems that occur must be provided to all pre-approved investors.

Conclusion

Private sales offer a unique opportunity for cryptocurrency broadcasters to create exclusive offers while maintaining control over their investments. By understanding these models and best practices, innovators can unlock new revenue flows, encourage deeper relationships with investors and guide long -term success in the world of cryptocurrency. As the space continues to evolve, private sales will play an increasingly important role in modeling the future of decentralized finance (Defi).