When a new crypto project starts, one of the first things people look at is how the team plans to use the presale fund. There is usually a lot of talk online, but not much clear explanation. Some people think it all goes into marketing. Others think the team keeps most of it. The truth is not the same for every venture. Some use it carefully. Some don’t. And some split it across many areas that most buyers never notice.
This blog walks through the main ways a venture uses its funds, why they do it, what risks exist, and what buyers should watch for. Nothing here is meant to sell any token or make you invest. The plan is just to understand where the money usually goes.
Why Presale Exists in the First Place
A crypto project usually launches a early sale when they need early money to build the product. It is similar to seed money in startups. But instead of taking money from big investors only, they open the door to the public. Some projects do it to get attention. Others to test early demand. A few use it for fair launch ideas.
The main point is that the presale fund helps the team start working before the token goes live on exchanges.
How projects use presale fund
The early sale amount doesn’t sit in one place. It gets divided across many needs, some big and some small, and each part affects how the project grows afterward.
1. Development and Engineering
One of the biggest uses of the presale fund is paying developers. Building a blockchain product is slow. It takes coding, audits, testing, fixing bugs, rebuilding failed parts, and more. Developers are not cheap.
A real project uses part of the presale fund for things like:
- Paying full-time engineers
- Smart contract building
- User interface design
- Back-end servers
- Security testing
- Ongoing updates
Some projects share detailed breakdowns. Others keep it general. But serious teams usually show proofs that the money is being used for actual work.
2. Liquidity for Exchanges
Another use of the this fund is adding liquidity. When tokens list on different exchanges, it needs liquidity for trading to work smoothly. Without it, buyers face price swings or cannot trade easily.
So the team adds part of the presale fund to the liquidity pool. They pair the token with ETH, BNB, SOL, USDT, or whatever token the exchange uses.
This is one of the most important uses because it allows people who bought early to trade once the token goes live.
3. Marketing and Promotion
People sometimes complain that projects spend too much on marketing. But in reality, without marketing, almost nobody hears about the token. Marketing is not only ads. It includes things like:
- Paying graphic designers
- Creating explainers
- Listing fees on websites
- Influencer partnerships
- Press releases
- Community events
- Running social media
Good marketing is not always loud. Sometimes it is simple things like better communication or clearer project updates. A part of the a fund usually goes here, but in solid projects, it’s not the majority.
4. Security Audits
A trusted project often sends its smart contract to an auditing company. Companies like CertiK, Hacken, Trail of Bits, and PeckShield do these audits. But they are expensive. Some audits cost tens of thousands of dollars.
So the team uses the presale fund to:
- Pay for audits
- Fix issues found in the audit
- Re-run checks
- Improve security layers
A project with no audit is not always a scam, but it carries more risk. That’s why audits are important, and why the presale money helps fund them.
5. Team Salaries and Operations
Running a crypto project is similar to running a small company. There is more than just coding. Teams need managers, designers, writers, moderators, and customer support.
The fund sometimes covers:
- Monthly salaries
- Office tools and software
- Legal fees
- Accounting
- Company registration
- Travel for events
- Servers and hosting
Some people ignore this part, but it is one of the biggest costs. A project cannot run on volunteers forever.
6. Community Building
A community is a big part of any token’s early life. Without it, the project fades. So part of the presale fund may be used to build and support the community. That includes:
- Reward programs
- Contests and airdrops
- AMAs
- Group moderators
- Translation teams
Strong communities usually help keep the project alive longer. So this is not just an extra. It is a real part of how projects grow.
7. Long-Term Reserves
Some projects do not spend all the presale funds in one way. They save a portion to use over months or years. This helps them handle slow periods or sudden expenses. It also helps them operate even when market conditions get rough.
Reserves can be used for:
- Future listing fees
- New hires
- Delayed upgrades
- Emergency recovery
- Expanding features
A good project often mentions this in its whitepaper.
Why This Matters to Buyers
When people choose what token to buy, they rarely check how the presale fund will be used. But this is one of the most important parts of early crypto research. The fund shows the team’s priorities, spending habits, and seriousness.
If the plan looks unclear, vague, and unrealistic, that is a warning sign. If the plan looks balanced, it does not guarantee success, but it at least shows planning.
Common Risks of Presale Fund Misuse
Not everything is smooth. There are risks. Real risks. Here are a few:
- Team uses too much on marketing and too little on product
- No liquidity added, causing bad trading experience
- Developers leave the project early
- Team takes salaries but does not build
- Funds used for personal gain
- Fake audits or low-quality security reviews
- Over-promising and under-delivering
- Sudden disappearance of team members
This is why people are told to research before entering presales.
How to Check a Project Before Getting In
You don’t need to be an expert. Just a few simple checks:
- Does the team show how the presale funds is divided?
- Are there real developers, not fake profiles?
- Is the smart contract open to view?
- Any audits? Even basic ones?
- Are there real updates, or only hype posts?
- Does the roadmap look normal or too perfect?
These small steps help you stay safer.
Final Thoughts
The presale fund plays a huge role in how a crypto project starts and what direction it takes. Some teams use it wisely, some use it carelessly, and some misuse it completely. The more you understand where the money goes, the easier it becomes to judge a project’s intentions.
No one can predict how any token will perform. But learning how projects use the presale funds can help you avoid bad choices and understand the structure behind early crypto launches.
