Token generation Event has a significant role in the cryptocurrency market as it assists in introducing new tokens that offer different purposes inside the blockchain network. The token launching process is considered a thrilling opportunity, assuring a significant and proficient payment process essential to enhance participation. Moreover, TGE has a high impact on blockchain projects because it helps increase funds, distributes digital assets, and also encourages commitment in their ecosystem.
This article explores what a Token Generation Event is, various types of TGE, and steps to launch a token via a TGE.
Token Generation Event (TGE)
Token Generation Event can be described as a technical and economical procedure of a new cryptocurrency being issued on a particular blockchain and is made available to the general public. The three main types of TGE are public sale, private sale, and Initial Coin Offering (ICO). TGE is mainly utilized by blockchain and cryptocurrency projects to raise awareness, attract users, and generate capital. The main aim of the TGE is to build community support, encourage ecosystem participation, and also serve as a device for engagement and encouraging long-term project development.
Types of Token Generation Events
Token Generation Events can have different forms, and each forms have a distinct style of framework and fundraising format. Let’s go through some popular types of Token Generation Events.
STOs: Security Token Offerings
Security Token Offerings is an event in which an organization offers blockchain-based tokens that entitled ownership of intangible or tangible assets. These assets can range from real estate and art to firm equity. STOs help to collect resources for creating new products or expanding the business. However, STOs are not without their risks, as they have the potential to cause asset loss, and are affected by regulatory changes and macroeconomic news. tZERO and 22x are popular examples of Security Token Offerings.
IDOs: Initial DEX Offerings
Initial DEX Offerings is a fundraising approach for the blockchain-based project hosted on a Decentralized Exchange (DEX). IDOs allow crypto projects to attract newer investors while promoting various services and products. The major benefits of IDOs are faster trading, less cost of listing, quicker liquidity, inclusivity, and equal access. On the contrary, some major risks associated with initial DEX offering are the permissionless and decentralized nature of DEXs that lack regulatory oversight, and increased chances of scams and technical exploits on the platform where the IDO is being held. Swap osmosis, Uni, and Jupiter are some of the examples of Initial DEX Offerings.
ICOs: Initial Coin Offerings
Initial Coin Offerings is a type of fundraising activity in the cryptocurrency and blockchain landscape. ICOs are classified into two: Private and Public. Private ICOs only allow a limited number of investors to purchase the tokens, while public ICOs are aimed at attracting as much as new investors as possible. Moreover, the main advantages of ICOs are that they avoid the mediator from the fundraising process and build direct connections among the investors and token issuers. On the other side, the major risk is that the funds invested in ICOs can be misused for illegal activities because of the transaction’s pseudo-anonymous nature. Ethereum, Ripple, and Dragon Coin are examples of Initial Coin Offerings.
Steps to launch a Token Generation Event (TGE)
Here are the steps involved if you wish to release a token via a Token Generation Event (TGE):
Step 1: Token Creation
This step includes determining tokenomics, which involves elements such as distribution, total supply, incentive mechanism, and utility. A crucial factor here is selecting the right blockchain to release your tokens on.
Step 2: Creation of Smart Contract
To enhance the efficiency, safety, and reliability of the TGE, it is recommended that a smart contract be created specifically designed for token generation and distribution.
Step 3: Community Formation
It is important to establish a rigid community following for your token project. This can be done by holding promotional campaigns on social media, launching an official website, email marketing, and collaborating with influencers.
Step 4: Token Distribution
Token Generations Events also determine the distribution of issued tokens. A key part of the process is to allocate tokens for the core team, developers, early investors, and participants, incentives and rewards, exchange liquidity, and public sale.
Final thoughts
Token Generation Events play a vital role in Blockchain Innovation, providing a distinctive method for capital raising, developing a decentralized ecosystem, and engaging the community. Effective planning and execution are essential for navigating the difficulties of the Token Generation Event (TGE). Moreover, comprehending more about TGE will assist us in utilizing the most appropriate market strategy for our crypto project.
