What is Token Generation Event (TGE)?
Let's find out Token Generation Event (TGE) meaning, definition in crypto, what is Token Generation Event (TGE), and all other detailed facts.
A token issuance time period is referred to as a Token Generation Event (TGE). Companies call their token sales Token Generation Events since their tokens initially embody only a small part of the end product.
A token is a virtual asset that is created with a utility in mind. Tokens provide a simple entry into the bigger crypto economic system. It does not have a store of value on its own but it is made in a way that software can be developed around it.
Initial Coin Offering (ICO) is a type of crowdfunding that utilizes cryptocurrencies as a way of increasing funds for startups. Project tokens are typically developed through these offerings.
However, there are companies that are eager to increase funds from tokens, but they do not choose to utilize ICOs. Instead, they choose a Token Generation Event as an alternative.
Both ICOs and Token Generation Events are focused on a similar concept. However, because of regulatory concerns, some organizations prefer to identify their fundraising campaigns as TGEs rather than ICOs.
Regulatory organizations have been under increasing demand to recognize ICOs as securities, raising the prospect of taxes. Token Generation Events, on the other hand, are not considered securities, therefore, they are not taxed. As a result, token issuers might perceive tax benefits in naming such events as Token Generation Events, rather than Initial Coin Offerings.