Important information about presale participation and brand tokens
What is it?
Purely speculative community token (usually no rights/util).
Brand-tied app token with standardized launch
Crowdfunding for products/causes (rewards, not equity).
Sale of registered equity to public investors.
Who raises / from whom
Anonymous teams or creators ↔ retail crypto.
Brands/projects ↔ fans + crypto participants.
Creators/brands ↔ backers.
Company ↔ institutions + retail via brokers.
Funding outcome if goal not met
N/A (tokens often still go live).
Auto-refunds to contributors; no launch.
“All-or-nothing” (backers not charged).
Deal simply doesn’t price (no retail prepay).
Initial float / tradability
Varies; often large insider % liquid day one.
Presale 25% supply; only half (12.5%) tradable at TGE, half vests.
No tradable asset.
Free float typically ~10–25% (varies); insiders locked.
Lockups
Often none or opaque.
60% liquidity locked; presale 50% vests.
None (no token/equity).
~180-day insider lockups common.
Liquidity source
DEX pools or thin CEX books; removable LP common.
AMM pool with locked LP (can’t be pulled).
None (no secondary market).
Exchange market makers/DMMs maintain two-sided markets.
Stabilization
None; pure volatility.
Structural (LP + vesting).
None.
Underwriter stabilization/greenshoe ~30 days.
Value accrual driver
Pure demand/memes; reflexive flows.
Brand traction + on-chain demand; transparent curve mechanics.
Non-financial rewards/perks.
Company fundamentals, earnings, multiples.
Investor rights
None.
No equity/dividends; optional fan perks; not a security by design.
No equity; rewards only.
Equity ownership, voting (class-dependent).
Fees/costs
Low to launch; high slippage/risk to trade.
Protocol/app fees; no underwriter take; on-chain.
~5% platform + ~3–5% payment fees (creator pays).
~4–7% underwriting + legal/audit.
Rug vectors
LP pull, insider dumps, contract shenanigans.
Presale vests, refunds if goal not met.
Creator non-delivery risk (no market risk).
No “LP pull”; risks are dilution, poor liquidity if tiny float.
Transparency
Often poor; renounced/hidden ownership common.
Rules baked on-chain; allocations and locks visible.
Clear campaign terms; off-chain fulfillment.
Prospects/filings; exchange disclosures.