Token Presale Scam
A fraudulent fundraise where scammers collect cryptocurrency in exchange for tokens at a discounted rate, then disappear before any product or token is delivered.
Also known as: ICO scam, IDO scam, initial coin offering fraud, presale fraud
Last reviewed: 10 June 2026
Token presales, also called initial coin offerings (ICOs) or initial DEX offerings (IDOs), allow projects to raise funds by selling tokens before they are publicly listed. Legitimate versions fund genuine development; fraudulent versions are straightforward theft vehicles where collected funds are pocketed and the token is never listed or the project vanishes.
Common red flags include an anonymous team, whitepapers with vague technical claims, high-pressure limited-time offers, celebrity endorsements (often fabricated), and no verifiable audit or escrow arrangement. Scammers create urgency to prevent due diligence.
Regulators in many jurisdictions treat token presale investments as securities offerings, meaning unregistered presales may be illegal regardless of intent. Consumers should research the team's verifiable identities, check independent security audits, and understand that early-stage token investments carry extreme risk even in legitimate projects.