What is TGE in crypto? TGE is a new model of public crypto offering that generates new tokens and makes them available to the public.

With that in mind, in this guide, you’ll learn how TGEs work, how to launch them, and how they differ from IDOs. Here’s all you need to know about the role of TGE in the crypto world.

What Is TGE in Crypto?

The TGE meaning in crypto can be described as the process of generating tokens that will represent a new crypto project. The TGE model helps crypto developers raise funds through private and public sales and ICOs. This model usually refers to issuing utility and security tokens. Investors will be able to use their tokens to access special features and pay for transactions. TGEs also enable early investors to become part of new projects before they become popular.

Besides helping developers raise funds to build a strong community, TGEs also support decentralization and ensure regulatory compliance. As mentioned above, TGEs represent a new model of public crypto offerings, which can take the form of ICOs, STOs, IEOs, and IDOs.

What Is the Meaning of TGE in Crypto?

The TGE abbreviation stands for Token Generation Event.

What Is the Difference Between IDO and TGE?

Now that you know what TGE is in crypto, here’s how this model differs from IDO. IDO is an acronym for the Initial DEX Offering. This model enables crypto developers to raise funds by selling their tokens on the best decentralized exchanges. These tokens will also be sold at a discounted price.

IDO providers will send a certain number of their tokens to DEXs, which will incentivize early investors. Funds obtained from the purchase of IDO tokens will be frozen for a predetermined period of time. Shortly after that (typically within a few hours), they’ll be released during token generation events. This means that investors will be able to trade them on DEXs.

TGEs will also allow investors to receive a number of tokens equal to the liquidity they provide.

How to Launch a Token Generation Event

TGEs are launched in the following way:

  • Token development — Crypto developers create their native tokens on popular blockchains like ETH and BSC. These tokens will be powered by smart contracts and audited by third-party companies.
  • White paper creation — Developers will release a whitepaper explaining their mission, use cases of their native token, and issues they aim to address. Whitepapers will also contain information about roadmaps and tokenomic allocations.
  • Presales and public sales — Presales will enable early investors to buy tokens at a discounted price. On the other hand, public sales will be open to all participants. During private and public sales, developers will try to build a strong community.
  • Token listing — Once the TGE ends, the token will be listed on crypto exchanges. Funds collected during TGEs are most often reserved for marketing and project developments.

Conclusion

So, what is TGE in crypto? TGE is an acronym for the Token Generation Event. TGEs help crypto developers raise funds by generating new tokens that will represent their projects. These utility tokens will enable their holders to gain access to special features and pay for transactions. The main advantages of TGEs include global accessibility, decentralized crowdfunding, and inclusive participation. TGEs can come in the form of ICOs, STOs, IEOs, and IDOs.

FAQs

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