Token Presales and Launchpads: How They Work

ICO, IEO, IDO, vesting, cliff, FDV at launch, whitelists and the MiCA white paper: understand token sales before you take part.

Tokens & NFTs · Intermédiaire · 10 min read · Publié le September 28, 2026

The essentials

Why projects sell tokens before launch

A crypto project needs funding to build its product and, often, a community of holders from day one. Selling part of its tokens before they are listed meets both needs.

The typical life cycle looks like this:

Private rounds (seed, private): selected funds and investors buy at a low price, usually with a long lock-up.
Public sale (presale, IDO, IEO): part of the supply is offered to the public, at a higher price than in the private rounds.
TGE (Token Generation Event): the token is created or distributed and becomes transferable.
Listing: the token starts trading on DEXs and/or centralized platforms.

Understanding where you stand in this cycle is essential: the public buyer almost always arrives after investors who paid less.

ICO, IEO, IDO: three ways to sell a token

Binance Academy sums up the differences as follows:

Format	Who runs it	Key points
ICO (Initial Coin Offering)	The project, on its own website	The team controls the contract and custody of the funds
IEO (Initial Exchange Offering)	A centralized exchange	The platform handles KYC, vets the project and lists the token
IDO (Initial DEX Offering)	A launchpad or DEX	A smart contract automates the sale; participants use a self-custody wallet

The ICO

The ICO is the original format, hugely popular in 2017-2018. You send crypto (often stablecoins or ETH) to an address or contract given by the project, and you receive tokens later. It is the format where you depend most on the team's good faith.

The IEO and exchange launchpads

In an IEO, the exchange acts as an intermediary. It verifies your identity (KYC, "Know Your Customer"), screens the projects and generally lists the token afterwards. Exchanges also offer variants:

Token sales: you subscribe with an accepted crypto, and your allocation often depends on what you hold on the platform at the time of a "snapshot" (a record of balances).
Launchpool / launch staking: you lock crypto you already hold and receive tokens of the new project in return, in proportion to your share of the pool. According to the Binance Academy guide, the locked funds remain yours and can be unlocked at any time.

Be careful: access to these programs depends on your country of residence and on each platform's terms. Some sales exclude entire jurisdictions. Check the official conditions before preparing anything.

The IDO and decentralized launchpads

In an IDO, the sale runs through a smart contract, from your own wallet. Binance Academy describes the common mechanisms:

Staking tiers: the more launchpad tokens you lock, the larger your potential allocation.
Whitelist or allowlist: a list of addresses allowed to participate, obtained through a lottery, community tasks or reputation criteria.
KYC: now common, even on decentralized launchpads.
Vesting: tokens are distributed gradually after the sale.

Vesting, cliff and unlocks: when do you actually receive your tokens?

Vesting is the schedule on which purchased or allocated tokens become available. It applies to the team, to private investors, and often to public buyers as well.

Cliff: an initial period during which nothing is unlocked. For example, a 12-month cliff means no tokens for a year.
Linear unlock: after the cliff, tokens are released gradually, for example every month.
Unlock at TGE: the percentage available immediately at launch.

Why does it matter to you? Because every unlock puts new tokens in the hands of people who can sell them. If your own allocation is locked while private investors' tokens are being released, you absorb the selling pressure without being able to react. The guide Tokenomics: market cap, FDV and unlocks covers these mechanisms in detail.

FDV at TGE: the number that changes everything

FDV (Fully Diluted Valuation) is a token's price multiplied by its maximum supply, including tokens not yet in circulation.

A simple example: a token sold at $0.10 in a presale, with a total supply of 1 billion, has an FDV of $100 million from the moment of the sale. If only 5% of the supply is circulating at launch, the "visible" market cap is just $5 million, but 95% of the tokens are still to be unlocked over the following months or years.

Questions to ask:

What FDV does the public sale price imply? Is it consistent with comparable projects that are already listed?
What share of the supply is circulating at TGE?
At what price did private investors come in, and when do their tokens unlock?

A low circulating supply combined with a high FDV can create an artificially high price at launch, followed by a decline as unlocks arrive. Binance Academy also notes that many tokens fall below their IDO price once trading begins.

What MiCA changes in the European Union

The European MiCA regulation (Regulation (EU) 2023/1114), fully applicable since December 30, 2024, governs public offerings of crypto-assets other than stablecoins (asset-referenced tokens and e-money tokens, which are treated separately).

The mandatory white paper

In principle, an issuer offering crypto-assets to the public in the EU must draw up a white paper meeting the content requirements of Article 6 and Annex I of MiCA: information on the offeror, the project, the rights attached to the token, the technology, the risks and the environmental impact.

According to the AMF:

the white paper must be notified to the competent authority at least 20 working days before its publication;
it must be published before the offer begins;
it must include a statement that it has not been approved by any competent authority and that the offeror is solely responsible for its content.

In other words, a notification is not a quality label: the regulator does not endorse the project.

The exemptions

MiCA provides for cases where no white paper is required, notably offers addressed to fewer than 150 people per Member State, offers whose total amount over 12 months does not exceed €1 million, or offers reserved for qualified investors. Tokens distributed for free, or created as a reward for mining or validation, are also exempt.

The right of withdrawal

Article 13 of MiCA provides a 14-calendar-day right of withdrawal for retail investors who buy directly from the offeror or from a provider placing the offer, subject to certain conditions. Read the terms set out in the white paper.

The case of former French ICOs

Before MiCA, France had an optional AMF visa for ICOs, introduced by the 2019 PACTE law. According to the AMF, this regime is replaced by MiCA's mandatory framework.

Presale scams

Presales attract a lot of fraud. The most common schemes:

Fake subscription sites: Binance Academy reminds users to use only links shared by the project's verified channels, because scammers create fake pages to steal funds.
Ghost presales: a project collects funds on its website, then never delivers the tokens or disappears.
"Guaranteed" returns: any promise to multiply your stake is a major red flag.
Fake admins: on Telegram or Discord, accounts contact you privately to "help" you take part.
Tokens without liquidity: you do receive tokens, but no market lets you sell them.

For an offer targeting EU residents, the absence of a MiCA white paper (outside the exemptions) is a serious warning sign. Also check the AMF blacklists.

A concrete example

Marc discovers a presale for a token called "NOVA" at $0.05. Before committing €300, he checks:

The format: it is an IDO on a launchpad, with KYC and a whitelist. He reaches the site through the link posted on the project's official account.
The FDV: total supply of 2 billion, which means an FDV of $100 million at the sale price. Only 8% of the supply is circulating at TGE.
The vesting: public buyers receive 20% at TGE, then the rest over 6 months. Private investors, who came in at $0.01, have a cliff of only 6 months.
The white paper: it exists, mentions the notification to a competent authority and includes the regulatory warning.

Marc's conclusion: the project looks well structured, but private investors will be able to sell at a large theoretical gain as soon as their cliff ends. He decides to commit only a small amount, accepting the risk of a total loss.

Checklist before taking part

Official link verified through at least two of the project's channels.
White paper available and read, with the MiCA warning if the offer targets the EU.
FDV at the sale price calculated and compared.
Vesting schedule for every category (team, private, public) known.
Identifiable team with a verifiable track record.
Eligibility conditions for your country checked.
Dedicated wallet, and no unnecessary unlimited token approval (see Approvals: revoking permissions).

Mistakes to avoid

Focusing on the unit price: $0.01 does not mean "cheap"; only FDV lets you compare.
Ignoring other people's vesting: private investors' unlocks often weigh on the price.
Mistaking the MiCA notification for a guarantee: the regulator does not approve the white paper.
Clicking a link received in a private message: this is the classic entry point for fake subscription sites.
Committing more than you can afford to lose: many tokens fall below their sale price after listing.

This guide is provided for general information only and does not constitute investment, legal or tax advice.

Key takeaways

ICOs, IEOs and IDOs differ mainly by the intermediary: the project alone, an exchange or a launchpad smart contract.
Vesting and cliffs determine when you, and also private investors, will be able to sell.
FDV at the sale price is the key indicator for judging valuation, far more than the unit price.
In the EU, MiCA in principle requires a white paper notified to the regulator, but it is not approved: it is an information tool, not a guarantee.
Use only verified official links and commit only an amount whose total loss you can accept.