Is a TGE the same as an initial coin offering? The short answer is Yes and No. The shorter answer is Yes. The long answer is– to continue reading.
While the crypto market has been ecstatic since the second half of 2023, it has been crazy in 2024. Investors have long forgotten the 2022 days when the market slumped and the major cryptocurrencies lost over 75% of last year’s gains.
With the fourth Bitcoin halving event on the horizon, several new platforms have launched their tokens to capitalize on the bull run and most of them are sold like hot cakes. A token generation event or TGE for short, is a term that is being tossed in discussions related to the launch of crypto tokens.
In this article, I will explain what TGE is and, as an investor, how it is important to you. I will also make a case of how a TGE is different or not different from an ICO. Let’s get started without any delay!
What Is TGE?
In its simplest terms, a TGE is the event when a token is launched on a blockchain network. A token generation event can take several forms. It can be a public sale, a private sale, or the most popular among the bunch, an initial coin offering (ICO).
The term TGE can represent the creation of a new token on an existing blockchain or they may refer to the creation of a new Layer-1 blockchain. Now, that is out of the way, let’s clear the confusion between TGE and ICO in the next section.
Is TGE The Same As ICO?
In December 2017, the US Securities Exchange Commission (SEC) added ICOs inside their authority by issuing a statement categorizing them as security offerings. So, how did the crypto projects deal with this development? They simply stopped calling an ICO an ICO.
They rebranded their token offerings with the lesser-known jargon TGEs. That’s called technology- making value out of what’s already there.
Requirements For A TGE
Loyal Community | You can call your token offering by whatever name you want to but it is of no use if there are no buyers for your tokens. Thus projects must foster a robust community via X, Discord, and Telegram at least several months leading up to the TGE. |
Marketing Strategy | Crypto tokens have no intrinsic value in the traditional sense. What gives them their value is the level of adoption by the crowds. This requires a robust, clear, and practical marketing strategy. Potential investors should have all the information they need to know regarding the token launch, including where and how they can buy them, well in advance of the launch date. |
A Roadmap | For a TGE to be seen as authentic by its potential investors, it should explain to the audience what it plans to do with the platform. A roadmap depicting the approximate timeline of the major milestones that the project hopes to achieve in the foreseeable future will do just that. |
Conclusion
Token Generation Events continue to be a vital part of the evolution of crypto markets. New protocols offering radically different applications of blockchain technology or improvements to the existing use cases emerge every day. And, every blockchain platform requires a native token to carry out its governance and value exchange.
While we saw a surge of Layer-2 blockchains in 2023, Layer-1 blockchains like Sui and Aptos are now gaining traction. With an increasingly stricter regulatory environment in the US and around the world, TGEs are gaining ever more popularity.
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