Also known as Pre-Sale

A Pre-ICO is a Pre- Initial Coin Offering. When early investors get to buy a crypto before the coin launches on an exchange as a freely tradeable coin.

The risks are higher for a pre-ico but the rewards can be greater if the project is a success.  You are effectively buying a coin or token before its product launch. As in seed capital to run the project and launch it into the crypto space.  

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