Understanding Token Generation Events: The Birth of Digital Assets in Blockchain

**Token Generation Event (TGE)** refers to the moment when a digital asset is «born» on the blockchain.

Prior to this, tokens existed solely in documentation, but after the TGE, they become usable. The initial blockchain mention comes with the creation of a **[smart contract](https://forklog.com/cryptorium/chto-takoe-smart-kontrakt)** and the issuance of coins, marking the beginning stages of a crypto project’s lifecycle. These actions can be viewed as a legal fact relevant to agreements such as **[SAFT](https://forklog.com/exclusive/saft-i-token-varranty-v-chem-ih-problema-i-kakie-est-alternativy)**.

Initially, the term TGE was used in the context of fundraising and initial coin offerings (**[ICO](https://forklog.com/cryptorium/chto-takoe-ico)**). In that context, effectively managing the token release was crucial not just from a technical standpoint, but also in terms of investor confidence— the reputation of the project depended on a transparent and well-planned launch. Many early blockchain startups faced challenges due to issues during the asset generation and distribution phase.

In current usage, TGE does not require a qualitative assessment. The event signifies the creation of an asset, except in rare instances of technical failures during the procedure.

TGE typically includes several sequential phases:

A notable example of a significant TGE is Ethereum, which took place in 2015 shortly after its ICO.

In 2023, there was a **[distribution](https://forklog.com/news/set-arbitrum-legla-na-fone-airdropa-tokenov-arb)** of **[airdrops](https://forklog.com/cryptorium/chto-takoe-airdrop-kriptovalyut)** for early participants of the **[L2](https://forklog.com/cryptorium/chto-takoe-resheniya-masshtabirovaniya-vtorogo-urovnya)** network **[Arbitrum](https://forklog.com/cryptorium/chto-takoe-arbitrum)**. The ARB tokens were minted upon request after the TGE. In 2024, the **[DePIN](https://forklog.com/exclusive/raspredelennaya-energetika-i-mirovaya-geodezicheskaya-set-chto-zhdet-depin-v-2025-godu)** project Grass Network distributed GRASS tokens listed on exchanges to over a million users.

**[Web3](https://forklog.com/cryptorium/chto-takoe-web3-web-3-0)** researcher Vladimir Menaskop has **[proposed](https://forklog.com/exclusive/tokenomika-s-vladimirom-menaskopom-chast-pervaya-ot-idei-k-ido)** a classification of TGE:

The TGE as a physical act marks the emergence of an asset on the blockchain, which, in later stages of tokenomics, manifests in various forms of public interaction with the team, community, and investors.

There are several primary methods of asset distribution post-TGE:

**Initial Exchange Offerings (IEO)** involve the placement of tokens on centralized exchanges (CEX). Assets are offered directly to investors through the CEX, acting as an intermediary. On one hand, this format is considered more secure since exchanges usually conduct due diligence before listing tokens. On the other hand, due to actions by **[AMMs](https://forklog.com/cryptorium/chto-takoe-avtomaticheskij-marketmejker)**, many projects have been «buried» after being listed on marketplaces like Binance. Besides exchanges, there are specialized platforms (launchpads) like Binance Alpha, which are designed for conducting IEOs and allow participation via Web3 wallets.

In the crypto market, there are instances of utilizing a pre-TGE format for selling digital assets—pre-TGE. This format gained traction in 2024, with **Whales Market** being one of the first projects in this segment.

Token pre-sales are drawn from traditional finance and can be characterized as Pre-Market Offerings (PMO), signifying the procedure of offering securities to investors before a trading session begins on an exchange.

Essentially, it’s preliminary trading of tokens that will be available after the TGE.

The Whales Market marketplace facilitates trading of project-issued tokens without open market dealings. This process involves heightened risk but offers the potential for additional profit.

At the end of April 2025, cryptocurrency exchange Binance introduced a new system for participating in TGE via Binance Wallet and receiving airdrops—Alpha Points. These **[points](https://forklog.com/news/binance-alpha-kak-zarabatyvat-po-700-na-airdropah)** are awarded for holding assets on the exchange and/or wallet and for trading volumes on the **Binance Alpha** platform.

Points are credited daily for activity over the past 15 days, after which older points are automatically deducted. An additional mechanism has been introduced for Point deduction—participation in TGE or receiving an airdrop costs 15 points.
On May 15, 2025, it was **[announced](https://forklog.com/news/coinmarketcap-zapustila-platformu-dlya-pre-tge-kampanij)** that the aggregator CoinMarketCap launched a platform for «pre-TGE campaigns.» **CMC Launch** focuses on projects that have not yet conducted a token release, offering users tasks to earn rewards.

TGE signifies not only the moment of token creation but also the starting point for building an economy and community around a project. A successful TGE brings various advantages, but it also imposes specific obligations:

It is crucial to remember that after the TGE, a new phase begins—maintenance and development. Projects are required to fulfill promises and enhance the product. Without this effort, even the most successful token generation event may not lead to long-term success.

Despite the significance of TGE, this stage is fraught with numerous risks that can impact the future of the company.