Token Generation Events Mark Crypto Projects' Births

A Token Generation Event (TGE) marks the birth of a digital asset on the blockchain. Before the TGE, tokens exist only in documents and become operational after the event. The first appearance on the blockchain involves deploying a smart contract and issuing coins, which are the initial stages of a crypto project's lifecycle. These actions can be considered a legal fact under agreements like SAFT.

Historically, the term TGE was used in the context of fundraising and initial coin offerings (ICO). The proper conduct of token issuance was crucial for investor confidence, as the reputation of the project depended on a transparent and well-thought-out launch. Many early startups in the blockchain industry faced challenges due to issues at the asset generation and distribution stage.

In modern usage, TGE does not need to be qualitatively evaluated. It simply reflects the fact that an asset has been created, except in rare cases of technical failures during the procedure.

The TGE process typically involves several sequential phases: token creation, auditing, tokenomics, generation and distribution, and exchange listing. The first example of a major TGE was Ethereum in 2015, shortly after the ICO. In 2023, there was an airdrop distribution for early participants in the L2-network Arbitrum. ARBs were branded on demand after the TGE. In 2024, the DePIN project Grass Network gave away GRASS tokens, which were listed on exchanges, to over a million users.

Web3 researcher Vladimir Menaskop proposes a classification of TGEs, including smart contracts on explorers, creating a faucet with a visual interface, airdrops, listing on exchanges, lockers, and mining. TGE, as the physical act of an asset appearing on the blockchain, is expressed in different forms of public interaction with the team, community, and investors.

The main types of asset placement after TGE include Initial Coin Offerings (ICO), Initial DEX Offerings (IDO), and Initial Exchange Offerings (IEO). ICO is one of the first and most popular crowdfunding methods in the cryptocurrency industry. IDO provides a more decentralized and community-oriented way to raise funds. IEO involves token offerings on CEX, which acts as an intermediary. This format is considered more reliable, but there is a high percentage of projects that fail after listing on trading platforms.

In the crypto market, there are examples of using the pre-TGE form of selling digital assets. The format gained popularity in 2024; one of the first projects in this segment was Whales Market. Pre-sale token transactions originated in traditional finance and can be described by the term Pre-Market Offerings (PMO). This refers to the procedure of offering securities to investors before the start of the trading session on the exchange. In essence, it is a pre-trade of tokens that will become available after the TGE.

The Whales Marketplace offers trading of tokens declared by projects without circulation on the open market. This process involves increased risk but offers the possibility of additional profits. At the end of April 2025, crypto exchange introduced a new system for participating in TGEs via and receiving airdrops. Points are awarded every day for activity within the last 15 days. Points older than this period are automatically deducted. Additionally, the Alpha Point deduction mechanic has been introduced—15 points are charged for participating in a TGE or receiving an airdrop.

On May 15, 2025, it was reported that aggregator launched a platform for ”pre-TGE campaigns.” The CMC Launch is focused on projects that have yet to conduct a token issue. Users are encouraged to complete tasks and earn rewards.

TGE is not only the moment of token creation but also the starting point for building the economy and community around the project. A successful TGE provides many benefits but also imposes certain obligations. Generated tokens become an incentive tool for participants, allowing a project to go public, which attracts liquidity and new investment. Community formation is crucial, as token owners become interested in the success of the startup, forming a core of loyal users and participants.

However, it should be remembered that after the TGE, a new stage begins—support and development. Projects are obliged to fulfill promises and develop the product. Without this, even the most successfully executed generation event may not lead to long-term success. Despite the importance of TGE, this stage comes with many risks that can affect the fate of the company, including high volatility, concentration of tokens in a small number of individuals, technical errors, and regulatory risks.