Token Genesis Event (TGE): What Is It? The Journey from Blockchain to Investors

When it comes to token issuance, many people tend to confuse two common concepts: Token Genesis Event and Initial Coin Offering. Although these two terms may seem similar, they actually have notable differences in their operation and ultimate purpose.

Basic Concept of Token Genesis Event

TGE is the process by which a cryptocurrency project creates and distributes digital tokens to a group of users who meet certain criteria. These tokens are often called utility tokens — meaning they provide practical functions within the project’s ecosystem, rather than being purely a store of value like traditional coins.

Tokens created through TGE are programmed to perform various roles on the project’s blockchain. They can represent voting rights in governance, internal payment methods, or staking tools to earn rewards. For this reason, a TGE event often marks a significant milestone in the project’s development roadmap.

Comparison: TGE and ICO Differences

Although both involve the issuance of digital assets, they serve different purposes:

ICO is primarily organized to raise capital for the project. It is similar to an IPO in traditional finance — investors buy tokens with the hope that their value will increase in the future.

TGE focuses on distributing utility tokens to unlock access to the project’s ecosystem. While sometimes TGE can also help raise funds, that is not its main goal. Instead, projects emphasize that their tokens are practical tools, not investment certificates that could be classified as securities.

This legal distinction is very important. Many projects prefer to call it TGE rather than ICO to avoid regulatory issues.

Reasons Why Projects Launch TGE

A TGE event brings significant value to the project’s development:

Expanding the User Community

When a project announces a TGE, this information spreads quickly within the crypto community. It helps attract new individuals who are interested in the project but haven’t had the chance to participate before. This attention also draws developers and economic thinkers eager to contribute to the ecosystem.

Encouraging User Engagement with the Platform

Owning tokens allows users to participate in activities such as voting on governance decisions, staking to earn interest, or using them in transactions on the network. These incentives motivate deeper involvement with the project.

Enhancing Liquidity

When tokens are issued and traded on crypto exchanges, trading volume and order book depth increase significantly. Better liquidity means more stable token prices and smoother buying and selling processes.

Raising Funds for Development

Although not its primary purpose, TGE can help the project gather financial resources to continue product development, expand the team, and improve infrastructure.

Notable Examples of TGE in Cryptocurrency History

Uniswap — When a Decentralized Exchange Launched Governance Tokens

Uniswap, a famous DEX platform launched in 2018, waited until September 2020 to release its UNI governance token. At the TGE launch, a total of one billion UNI tokens were created. The distribution plan spanned four years, ending in September 2024.

Releasing UNI was a strategic move — it granted the community ownership and voting rights in the exchange’s governance decisions. Simultaneously, the project activated liquidity mining programs (, providing UNI rewards to those willing to supply liquidity to pools. Currently, the UNI price is around $5.44 based on latest data.

) Blast — Ethereum Layer-2 Supported by Blur

On June 26, 2024, Blast — a Layer-2 solution for Ethereum developed by the team behind Blur — held its token BLAST release event. Four days prior, the project pre-minted this token on Blast’s mainnet.

This distribution method is quite interesting: tokens were airdropped to users who deposited Ether or USDB into the Blast network, as well as those who used decentralized applications on the platform. A total of 17% of BLAST supply was reserved for this release to reward early community members.

Ethena — Breakthrough in Decentralized Finance

Ethena stands out in the DeFi space by introducing USDe — a non-traditional synthetic stablecoin. On April 2, 2024, the project launched its own TGE with the distribution of 750 million governance tokens ENA.

Participants involved in Ethena’s development previously had the chance to earn “shards” — a form of reward points given when users complete various activities on the platform. These shards could later be converted into ENA tokens. The current ENA price is $0.23.

How to Carefully Evaluate a TGE Event?

If you are interested in a project about to launch tokens, don’t rush in. Conduct a thorough due diligence process:

Read the Project’s Whitepaper

The whitepaper is a foundational document providing all essential information: project purpose, core technology, development roadmap, team details, and especially tokenomics ###— how tokens are distributed, locked, and released (. It may also point to other useful reference materials for further research.

Research the Founders

Review the background and expertise of the project leaders. Experienced founders with a solid track record are a positive sign. Ask yourself: What have they done before? What technologies are they proficient in? Do they have the capability to bring this project to success?

Follow Discussions on Social Media

Platforms like X )Twitter( or curated Telegram groups are where the crypto community shares candid opinions about the project. Look for these discussions to understand the general perception. Honest feedback from users and developers can help you identify both strengths and weaknesses.

Understand the Risk Context

Never skip this step. Investigate the current legal status and potential future challenges. Consider the level of competition in the project’s field — is it overly saturated? Who are the main competitors? These questions help you better understand the real potential and risks involved.

Risks to Be Aware Of

Participating in a TGE is not without risks. The biggest danger is rug pull — a scenario where founders suddenly issue tokens, pump the price, then run away with the funds at the peak, leaving other investors heavily damaged.

For this reason, thorough research into the project’s legality, team credibility, and community support is crucial before investing.

Also, remember that there are no guarantees of refunds or profits. Cryptocurrency, especially newly issued tokens, carries high risk and volatility. Always consider your financial situation carefully before participating.

Frequently Asked Questions

Do all crypto projects conduct TGE?

No. Not all projects need tokens to operate. However, most current projects adopt tokenization as part of their operational strategy, so TGE and initial coin releases remain common industry events.

Why Do Some Projects Call It TGE Instead of ICO?

Terminology matters. Calling it TGE emphasizes that they are distributing utility tokens — practical operational tools — rather than selling investment certificates. This helps avoid potential legal issues if tokens are classified as securities under law.

Is the Token Genesis Event the Only Time Tokens Are Issued?

Not necessarily. Some projects may conduct multiple issuance rounds in the future or use mechanisms like airdrops to distribute additional tokens. However, TGE is generally regarded as the most significant milestone — the first official introduction of tokens to the public.

Conclusion

A token creation event is a crucial milestone for any cryptocurrency project. It marks the official circulation of tokens, creating opportunities for community participation and ecosystem growth. TGE often signals the next phase in a project’s development, with potential to expand adoption, improve liquidity, and open new fundraising avenues.

If you have identified one or more long-term promising projects you trust, pay attention to upcoming TGE events. They could be valuable opportunities to get involved early and contribute to the project’s success.