Investing in a presale is taking a guess on a mission in its earliest stage. Contemplating the usually harsh nature of the crypto market, an excellent proportion of presale initiatives fail after launch, whereas many by no means even launch in any respect. When a presale mission fails, the token worth declines considerably; some could even go to zero. Each mission that fails after presale leaves traders underwater because the tokens lose worth and investments change into losses. So, whereas presales are a great way to make income from investing early in promising initiatives, presale traders are additionally more likely to run into heavy losses if the mission fails. Right here, we discover the potential of a mission failing after a profitable presale and why this could occur.
What occurs after a presale?
A mission is anticipated to proceed with growth plans or intensify present applications utilizing funding from the presale. After a presale ends, the next is anticipated
1. Trade Itemizing
Token technology occasion(TGE) is often the subsequent step for a presale mission. Token Era Occasions are the procedures concerned in bringing the mission’s native token to life. TGE procedures encompass token minting on the blockchain, making a liquidity pool on a Dex, and itemizing on a centralized change. Promotional occasions like airdrops and launch pool occasions are additionally a part of the TGE.
2. Protocol/mission Improvement
The mission is anticipated to start out engaged on the promised options. For DeFi initiatives, a purposeful protocol is anticipated. This is identical for initiatives that require a protocol. Tasks that don’t require a protocol are anticipated to start out creating the core of their operations.
3. Advertising
Submit-presale, initiatives proceed with advertising and marketing methods to develop the mission’s presence, entice traders, and scale adoption. Advertising methods like Digital and website positioning advertising and marketing, KOL advertising and marketing, and community-led crypto advertising and marketing are widespread with crypto initiatives.
4. Partnerships and collaboration
Tasks are additionally anticipated to type mutual relationships with exterior initiatives or different initiatives in the identical class. Partnerships and collaboration will be on advertising and marketing, growth, and adoption grounds. As an illustration, presale initiatives like Avici and Omnipair have shaped partnerships with Visa, Litprotocol and different respected initiatives to scale growth and adoption
5. Group growth and progress
Group is the lifeblood of a thriving web3 mission. To this impact, presale initiatives often pursue neighborhood progress by means of promotional occasions that allow them to construct a fan base. Incentivized promotional occasions, token utilities like staking, and airdrops are standard neighborhood progress methods in Web3.
Can a mission fail after presale, and why?
The straightforward reply is Sure. The truth is, present knowledge exhibits that initiatives usually tend to fail after presale. Whereas this is identical for startups in any sector, the crypto area has distinctive elements that trigger failure of presale initiatives and truthful launches. A number of elements could contribute to a presale mission’s failure. The causes could also be from the market, traders, or the mission itself. Let’s assessment a number of the elements that may trigger a mission’s token to return to zero after presale.
Components which will trigger failure after presale
Components that trigger a mission’s failure after presale will be grouped in line with the lead offender, as follows;
- Broader Market Forces and Traits
The crypto market is risky and infrequently harsh. Comparatively, it’s the most torrid international monetary market. Because of this, initiatives wrestle to outlive, resulting in a decline within the worth of the token. Presale initiatives that launch throughout a bear market face a tough market and due to this fact have decrease possibilities of survival, in comparison with initiatives launched in a bull market. Even in a bull market, a number of market elements could trigger a token to go to zero after presale.
- Investor Psychology and Resolution Patterns
Traders are a major issue within the success of a crypto mission. How traders deal with their funding could make or break a mission. A mission whose traders have long-term plans typically enjoys extra secure worth developments. Alternatively, short-term pondering traders could trigger erratic worth actions that may be detrimental to the mission.
Different investor-related elements that may trigger mission failure embrace sell-offs from main holders, impatience amongst traders, and a scarcity of dedication to the mission. The latter is essential as devoted traders change into main function gamers locally and contribute to the general mission progress whereas holding their investments for the long run.
- Crew Execution and Challenge Fundamentals
That is maybe essentially the most related issue on this context. How a crew manages the mission can supply elements mentioned beforehand. Each facet of the mission, from Tokenomics to the performance of the protocol. The mission crew should guarantee acceptable supply if the mission is to outlive after presale. Nearly all of failure circumstances for presale initiatives stem from poor habits from the crew and dangerous merchandise.
The crew can also be accountable for navigating the mission and pivoting to new utilities in any case. Subsequently, groups are additionally the main reason behind failure for web3 startups that matured into prime initiatives.
Widespread case research
Contemplating the elements above, let’s check out some standard presale initiatives that failed in 2025 and what brought on their tokens to go to zero.
Aquabot (Solana Blockchain)
The Solana mission, Aquabot, raised over 21,700 $SOL to construct a sophisticated Telegram buying and selling bot. Hyped by the fashionable Telegram Bot narrative, Aquabot attracted 1000’s of traders who dedicated vital funds to the presale. The mission was additionally marketed by a number of crypto KOLs, resulting in sturdy trade presence. Nonetheless, shortly earlier than TGE, the mission crew all of the sudden modified the phrases of the presale and vanished with the presale proceeds price over $4.6 million on the time. The token’s worth went again to zero and by no means launched on any change.
CrediX Finance (Sonic Blockchain)
Credix Finance raised $13 million from a number of presale rounds to construct a lending protocol on the Sonic Blockchain. CrediX Finance accomplished its financing and launched within the basic fashion in July 2025. Nonetheless, weeks after the launch, the protocol was reportedly exploited, and $4.5 million price of property have been stolen from the platform. Audit experiences from respected corporations counsel an inside collusion and an exit rip-off. The mission has since halted growth. The token worth is now again to zero.
URF Memecoin (Solana Blockchain)
The URF memecoin crew raised 2,400 SOL (price over $450,000 on the time) in commitments from presale traders to launch the meme coin token on Solana. Lower than 24 hours after the presale was accomplished in March 2024, the crew deactivated their social media accounts and vanished with the presale proceeds. Regardless of widespread influencer advertising and marketing, the URF memecoin by no means launched, leaving traders with vital losses. The mission crew reportedly used the presale funds to commerce different memecoins.
handle your presale investments to keep away from heavy losses?
Contemplating {that a} presale token might go to zero after launch, listed below are just a few precautions to take whereas investing in presale initiatives;
Earlier than investing in a presale mission, it is suggested that you simply correctly analysis the mission. Undergo out there data just like the mission’s fundamentals, crew profile, tokenomics, trade relevance, and neighborhood construction. Don’t ignore any crimson flags whereas researching a mission. Think about a shady crew and blurry tokenomics as main caveats.
This can be a broadly identified technique utilized by presale traders. Capital preservation is an efficient option to safe your beginning capital. As an illustration, if you purchase a presale from dexs like uniswap or pancakeswap, you possibly can protect your capital by promoting half of your investments as soon as the token’s worth doubles in worth. This ensures you don’t lose your capital if the token’s worth goes to zero. You possibly can develop a capital-preservation technique that works for you utilizing this method.
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Sensible Contract Audit
Assessment the mission’s sensible contracts to identify malicious capabilities. Use sensible contract analytics instruments to research the token contract, vesting contracts, liquidity contract, and the protocol’s contracts. Test liquidity locking contracts for Dex-listed property and mint capabilities in token contracts. Learn extra on sensible contract audit for presale initiatives right here.
Develop a risk-managed funding. Perceive your threat tolerance degree and keep away from investing above these ranges. Put plainly, don’t make investments greater than you possibly can lose.
Conclusion
Investing in presale, when finished properly, could make mind-blowing income for an investor. But it surely doesn’t come with out its personal caveats. The crypto area is the wild west, and traders are at all times at a loss when a mission goes south. Within the present market construction, it’s extra essential than ever to take precautions whereas investing in present and presale initiatives. We mentioned some precautions you possibly can take. Nonetheless, it’s much more essential to know why presale initiatives fail and place your self towards these elements.
