The Whitelist-First approach to presales is one that’s been gaining traction in the crypto space. It’s an invitation to participate in a new token launch, but only for those who meet certain pre-established criteria. These criteria can vary by project but generally include being an active community member or having a vested interest in the project from the start.
This model aims to target dedicated investors and limit the number of newcomers drawn in by speculative hype, allowing this early group to gain lucrative tokens at a lower initial price. It otherwise works as a tier 1 round, so displacement in post-launch market cap is expected.
So what does it mean? Why use it? And what’s the catch?
How does the Whitelist-First approach help those approved?
This approach can certainly offer more opportunity for those who make the cut, and the competition for attractive prices is significantly reduced, but the downside is that it’s a lot harder to gain access to a whitelist in the first place. Are you familiarized with the mechanics?
It’s also worth mentioning that this route is not solely for bigger players or seed investors. For projects like these, engaging an audience familiar with the project beforehand is important. Crypto presales can be fraught with risk – there are some really awful projects out there – and the whitelist-first process can create a layer of trust on its own.
In theory, the whitelist-first approach can also help average investors get larger allocations than they would during a public presale.
Is the Whitelist-First adoption a viable industry-standard?
Let’s not kid ourselves, though – that’s still quite an accomplishment. They’re a step in the right direction for crypto, but exclusivity has its downsides too.
@TechCrunch is already starting to project the Whitelist-First concept as an “industry standard”, which just screams elitism to the average investor.
What risks does entry to early access pose for investors?
Early access to presales can also come with risks. We know that crypto presales can be incredibly volatile, and many projects fail to succeed against competing tokens.
❗ Moreover, many presale projects are rife with speculation. We’ve seen a lot of token prices inflate dramatically, which rarely ends well for early investors.
Presales in Europe face regulatory challenges
The biggest project to weight-in so far was KuCoin. Their presale is under heavy scrutiny from the EU’s MiCA regulations, which hit the market hard on 30th December 2024.
The MiCA regulations require any entity issuing crypto-assets or tokens to prepare and publish a MiCA-compliant white paper prior to offering tokens to the public. From a business perspective, this is a nightmare.
Can crypto payroll help fintech startups reach the unbanked?
Fintech startups in Asia are leveraging crypto payroll solutions to boost financial inclusion.
They are specifically catering towards unbanked workers in the gig economy. This is done by utilizing a deployment structure based on stablecoins and currencies native to the community, with a solution that pays out in local or digital currencies. This is essentially fee-free for the business and instant for employees, who are often paid through early access mechanisms.
This approach allows those without bank accounts to receive payments through more traditional means, circumventing the traditional banking system and regulatory hurdles that come with it.
Why is the whitelist access worth it?
In theory, being an APEMARS-whitelisted trader is invaluable. The top tier price of 0.00001699 at Stage 1, particularly in a rising market means higher profit margins for those already on the access list.
There’s likely a lesson there. Perhaps for the best, or perhaps for the worst.
To white-list now is to have a fighting chance in the next round. Making it onto the list is of paramount importance.