It is incredible how crowdsale is already killing it in such a short time. In the top 10 highest funded crowdfunding projects, there are three crowdsale projects: The DAO($91,383,831), Ethereum($18,439,086), WAVES($16,436,095).
Crowdsale is a new way of crowdfunding with crypto technology. Crowdfunding primarily aims to raise fund from the crowd before launching a service. The big difference between crowdsale and crowdfunding is what they exchange funds with. Crowdfunding just gives its supporters early access or accepts preorders. In contrast, crowdsale issues/sells tokens on the blockchain that could represent shares/equity of the company.
Tokens function as a crypto-currency for use within the service. Depending on what service the project offers, the token will serve as an access ticket to that service. If the project is a software application that lets you buy and sell digital goods without an intermediary, for example, then you might use tokens to pay for digital goods. Conversely, if you are the seller of digital goods, you may be paid tokens by the network. Tokens allow you participate in the project that will eventually be launched as a result of the crowdsale.
What’s so interesting about crowdsale is what happens to the tokens afterwards. They will be bought and sold in the open market, gaining their own market value independently of the application that they are used for.
This is why crowdsale attracts many supporters who expect to profit in the open market.