Article Summary
Citi and Swiss-based SDX are partnering to tokenize shares of late-stage equities, allowing select institutional investors to purchase tokenized shares early in a pre-IPO presale. This movement towards pre-IPO sales can cut down on paperwork, speed up the process of going public, and give companies a better chance for a successful public launch. Investors can analyze tokenomics, staking rewards structures, and all the planned token benefits during the presale period to judge which tokens have the potential to explode in value.
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What are crypto presales?
At their most basic, crypto presales are a way to purchase tokens before they launch on exchanges. For some tokens, investors get a chance to grab tokens when they’re at the absolute lowest price they’ll ever be.
Now, there’s a real chance that the crypto presale model is coming to the hottest stocks.
Finance giant Citi is partnering with Swiss-based SDX, the digital-assets arm of the country’s leading stock exchange. The initiative aims to tokenize shares of late-stage equities, stocks that have yet to launch with an IPO.
Select institutional investors will get a chance to purchase tokenized shares early, as Citi applies a variation of the crypto presale model to traditional equities.
Pre-IPO Presales Catch On
Why make a move towards pre-IPO sales? Two primary reasons.
First, the IPO process is littered with red tape, forms, and digital and paper documents. Second, tokenizing Real-World Assets (RWAs) is a movement that’s gaining increasing steam.
Late-stage equities risk losing the momentum of strong fundraising efforts while trying to settle all the required documentation. For just the benefits mentioned above, RWA tokenization cuts down on paperwork and can speed up the process of going public.
Institutional investors, critical for a successful launch, can demonstrate their support for an IPO by purchasing tokenized shares early.
The companies likely to use such a model are often established, mature private entities seeking to go public – just the kind of offering many professional investors look for.
Tokenized shares could give those companies a better chance for a successful public launch.
Why Investors Prefer Crypto Presales
Crypto investing frequently boils down to balancing two things:
- Short-term momentum
- Long-term utility
Meme coins are the masters of the first; investors look at the best meme coins on presale to try to judge which ones have the potential to explode and go 5x, 10x, 100x, or more.
Judging long-term utility is trickier, but again, the presale period is critical. Investors can analyze tokenomics, staking rewards structures, and all the planned token benefits, as well as examine market fit.
In the light of Citi’s announcement, here are three crypto presales worth a closer look.
1. SUBBD Token ($SUBBD) – AI Comes for the $85B Content Creation Market
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