BlockchainIntermediate#Token Launch#Fundraising#Tokenomics
TGE (Token Generation Event)
T
Definition
The moment a new cryptocurrency token is created and distributed — the official launch event where tokens become transferable and tradeable for the first time.
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Concept Diagram
Key Takeaways
1
TGE is the official launch moment when a new token becomes tradeable — the crypto equivalent of an IPO.
2
Token distribution typically allocates 30-40% to community, 15-25% to investors, with multi-year vesting.
3
Beware 'low float, high FDV' launches — massive fully diluted valuation with tiny circulating supply.
4
Check unlock schedules on TokenUnlocks — large upcoming unlocks create constant selling pressure.
Practical Example
A new L2 blockchain does its TGE with 5% of total supply circulating at launch, priced at $2.00. FDV is $2 billion. Over the next 18 months, investor tokens unlock monthly, increasing circulating supply by 400%. The price drops to $0.30 as early investors sell.
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Related Terms
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Market CapThe total market value of a cryptocurrency's circulating supply (Price x Circulating Supply).
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Airdrop HuntingThe strategic process of interacting with new protocols to qualify for free token distributions, often automated by AI scripts.
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Governance TokenA cryptocurrency that allows its holders to vote on decisions that govern the development and operation of a blockchain project.
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ICO (Initial Coin Offering)A fundraising method where new projects sell their underlying crypto tokens in exchange for Bitcoin or Ether.
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TokenomicsThe study of the economic quality of a cryptocurrency, including supply, distribution, and utility factors.
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