What is a token generation event?

A token generation event (TGE), also known as an initial coin offering (ICO), is a fundraising mechanism used by blockchain-based projects to raise funds for their development. During a TGE, a project will issue and distribute its native tokens to participants in exchange for a certain amount of cryptocurrency, usually popular ones like Bitcoin or Ethereum. These tokens can serve various purposes within the project's ecosystem, such as granting access to services, representing ownership rights, or functioning as a means of exchange. Additionally, TGEs allow blockchain startups to establish a community of early adopters and supporters who receive tokens at a discounted rate, potentially providing them with future value. While TGEs can be an effective way of raising funds and gaining user participation, they also carry risks, such as regulatory concerns and potential scams, which investors should carefully consider before participating.

This mind map was published on 12 September 2023 and has been viewed 104 times.