A Token Generation Event, commonly referred to as TGE, is the moment when a digital token is first created on a blockchain and becomes a technically existing asset. Before this stage, a token may appear in whitepapers, tokenomics models, and legal documents, but only after the deployment of a smart contract and token issuance does a project obtain a real instrument for building its economy and interacting with the market.
What TGE Means in the Modern Crypto Industry
Originally, the term TGE was closely associated with ICOs and fundraising processes. At that time, launching a token was critical for a startup’s reputation: mistakes in distribution, smart contract failures, or opaque terms often led to the collapse of projects. Today, TGE is understood more broadly and neutrally. It primarily denotes the technical fact of creating an asset on a blockchain, whether it is Ethereum, Solana, BNB Chain, or another network.
From a legal perspective, TGE can serve as a reference point for obligations under agreements such as SAFT and similar frameworks. From this moment on, tokens begin their independent life within the project’s ecosystem.
Key Stages of a Token Generation Event
The token generation process is rarely limited to a single transaction. As a rule, it consists of several sequential steps. First, the team develops a smart contract that defines issuance parameters and token logic. This is followed by an independent code audit aimed at reducing the risk of vulnerabilities and technical errors.
Special attention is paid to tokenomics, namely the allocation of shares between the team, investors, reserves, staking programs, and ecosystem funds. After that comes the actual generation and distribution of tokens, often with vesting and cliff mechanisms to prevent immediate large-scale selling. The final stage frequently includes listing on centralized or decentralized exchanges to ensure liquidity.
One of the earliest large-scale examples of TGE was the launch of Ethereum in 2015. In later years, the market witnessed major events such as the ARB airdrop from Arbitrum in 2023 or the GRASS token distribution by Project Grass in 2024, which involved more than one million users.
Forms of TGE and Token Distribution Methods
In practice, a TGE can take many forms. In its simplest version, a token appears as a smart contract that can be interacted with via a blockchain explorer. This approach is often used in testnets. An earlier format involved faucet services with a user interface for claiming tokens, which today are mainly applied in test networks or for community tokens.
Airdrops have become the most popular way to interact with users. They can be distributed directly to wallets or require claiming through an official website. Similar mechanics were used by Hyperliquid, Optimism, and Jupiter. Other options include direct listings on CEXs or DEXs, as well as the use of lockers, where tokens are locked until vesting periods expire. A separate niche is occupied by mining and gamified models, where user actions are monetized and later tokenized.
After TGE, assets can be distributed through ICOs, IDOs, or IEOs. ICOs were historically the first mass crowdfunding method in crypto, IDOs emphasized decentralization and accessibility, while IEOs shifted part of the responsibility to centralized exchanges and launchpads such as Binance Alpha, OKX Web3 and Bybit Alpha.
Pre-TGE and New Token Trading Formats
In 2024, the pre-TGE segment began to actively develop. Platforms like Whales Market offered users the ability to trade rights to tokens even before their official generation. In essence, this is an analogue of pre-market deals in traditional finance, where investors gain access to an asset before public trading begins. This format carries increased risk but attracts users with the possibility of early entry.
In 2025, Binance introduced a system for participating in TGE events and airdrops through Alpha Points within Binance Wallet. Following Whales Market, many popular exchanges also added the ability to trade coins pre-market, even before the TGE, such as pre-market trading of perpetual futures from Bybit or pre-market trading from OKX. This became especially popular following the trend of all sorts of "tapping" events followed by airdrops in the project's tokens. Points are awarded for activity and asset holdings, have a limited lifespan, and are deducted when participating in token generation events. Around the same time, CoinMarketCap launched the CMC Launch platform, focused on pre-TGE projects and task-based campaigns for users.
Why TGE Shapes a Project’s Future
A Token Generation Event is not just a technical launch, but the starting point of a project’s entire economic model. Tokens become tools for incentives, governance, and liquidity attraction. Through them, a community is formed that is заинтересована in the project’s success and can participate in voting processes, especially within DAO structures.
However, after TGE, the team’s responsibility only increases. High volatility in the first days of trading, token concentration in the hands of a small group of holders, potential smart contract bugs, and regulatory uncertainty can all undermine market confidence. Without further product development and the fulfillment of promises, even a perfectly executed TGE does not guarantee long-term success.
In a mature crypto market, TGE remains a fundamental stage in a project’s life cycle. It defines the starting conditions, but it is the actions taken after token generation that ultimately determine whether a startup can evolve into a sustainable ecosystem.
