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From IPO to TGE: The Fundraising Revolution in the Blockchain Era
Beginner
2025-09-23 | 5m
A Token Generation Event (TGE) has become a cornerstone of the blockchain ecosystem, serving as a critical mechanism for projects to raise capital, distribute tokens, and bootstrap their communities. Unlike traditional fundraising methods, TGEs operate in a decentralized environment, enabling global participation without intermediaries. In 2025, the landscape of TGEs evolved significantly, with projects like 0G Labs, Aster, and BlueWhale AI leveraging this model to advance decentralized AI, trading infrastructure, and data networks. This article explores the mechanics of TGEs, their growing importance in the crypto industry, and the latest trends shaping their future.
What is a TGE?
A TGE refers to the process where a blockchain project creates and distributes its native tokens to investors. It functions similarly to an Initial Public Offering (IPO) in traditional finance but with key distinctions: TGEs are executed on blockchain platforms like Ethereum or Solana, using smart contracts to automate token issuance and allocation. The process typically involves several stages:
Token Creation: The project develops a token with defined utility, supply, and distribution model.
Fundraising Rounds: Tokens are sold through private sales, pre-sales, and public sales, often at escalating prices to reward early supporters.
Token Distribution: After the sale, tokens are allocated to investors’ wallets, often with vesting periods to prevent market dumping.
Exchange Listings: Tokens become tradable on major exchanges, providing liquidity to investors.
TGEs emphasize transparency and utility, with tokens often granting governance rights, staking rewards, or access to platform services.
How TGEs Work?
The process of a TGE begins with the creation of the token on a blockchain, often using standards like Ethereum’s ERC-20 or BNB Chain’s BEP-20. Once the token is developed, the project team sets the terms of the sale, including the price, supply, and distribution model. Investors can then purchase the tokens using established cryptocurrencies like Bitcoin or Ethereum, or sometimes even fiat currency, depending on the platform.
After the TGE, the tokens are distributed to investors’ wallets, and the project team uses the raised funds to advance their goals. This might include developing the platform, marketing the project, or expanding the team. Successful TGEs often generate significant attention and can lead to increased demand for the token, driving up its value in secondary markets. However, poorly executed TGEs can result in legal issues, loss of investor trust, or even the failure of the project.
The Importance of TGEs in Crypto Projects
TGEs are a critical step for many blockchain projects, providing the financial resources needed to bring their vision to life. They also offer an opportunity for early investors to get involved in promising projects at the ground level. For the broader crypto community, TGEs represent a chance to discover innovative technologies and participate in the growth of new ecosystems.
However, the success of a TGE depends on several factors, including the project’s credibility, the strength of its use case, and its ability to navigate regulatory challenges. Investors should approach TGEs with caution, conducting thorough research to avoid scams or poorly planned projects. For blockchain startups, a well-executed TGE can be the foundation for long-term success, while a mismanaged one can lead to significant setbacks. As crypto space continues to evolve, TGEs remain a key mechanism for launching new tokens and driving innovation.
Why TGEs Matter?
TGEs have revolutionized fundraising by allowing projects to bypass traditional financial intermediaries and access a global pool of capital. For example,
0G Labs raised $35 million in equity rounds and an additional $30 million through node and token sales to fund its decentralized AI protocol. This model not only accelerates capital formation but also fosters early community engagement. Projects like
Asterhave allocated over 50% of their token supply to community airdrops, incentivizing users to participate in platform activities long before the TGE. By aligning incentives between developers and users, TGEs create a foundation for decentralized governance and long-term growth.
Current Trends in TGEs: AI, Regulation, and Enhanced Security
The TGE landscape in 2025 is characterized by several key trends:
AI Integration: Projects like
0G Labs and
BlueWhale AI are using TGEs to fund decentralized AI networks. 0G’s "Aristotle Mainnet" aims to make AI a public good by combining decentralized storage, compute, and data availability, while BlueWhale AI leverages token incentives to reward node operators for securing its network.
Regulatory Evolution: Governments and regulators like the SEC are increasingly providing clearer guidelines for token sales, pushing projects to prioritize compliance. For instance, Nasdaq’s recent application to the SEC for tokenized stock trading reflects this shift toward regulated TGE models.
Enhanced Investor Protection: To build trust, projects are implementing vesting schedules (e.g., BlueWhale AI’s 48-month token release plan), smart contract audits, and transparent tokenomics.
Case Studies: 0G Labs, Aster, and BlueWhale AI
0G Labs: Launched its TGE and Aristotle Mainnet in September 2025 with support from 100+ ecosystem partners, including Google Cloud and Chainlink. The project unifies decentralized storage and compute to power AI applications, demonstrating how TGEs can fuel large-scale infrastructure projects.
Aster: The decentralized exchange announced its TGE for September 17, 2025, allocating 8.8% of its token supply to immediate unlocks for airdrop participants. Aster’s TGE emphasizes community rewards, with points awarded for trading volume and platform engagement.
BlueWhale AI: Planning a TGE by the end of 2025, BlueWhale AI has designed a detailed tokenomics model where node operators can earn up to 180% APY by staking tokens. The project highlights the use of TGEs to incentivize network participation and decentralized governance.
The Future of TGEs: Toward Greater Decentralization and Compliance
The future of TGEs will likely see increased adoption of decentralized launch platforms (e.g., DAO Maker, Polkastarter) and stronger regulatory frameworks. As projects like Nasdaq embrace tokenized assets, TGEs could bridge traditional finance and blockchain, enabling safer and more efficient capital markets. Moreover, innovations in bonding curves—where token prices adjust dynamically based on supply and demand—are making TGEs more transparent and fair.
Conclusion
TGEs have evolved from simple fundraising tools into sophisticated mechanisms for building communities and advancing technology. While risks remain, the trend toward greater transparency, compliance, and utility—exemplified by projects like 0G Labs and Aster—signals a maturing market. As the crypto industry grows, TGEs will continue to play a pivotal role in driving innovation and decentralization.
References:
Benzinga. (2025). 0G Labs Launches Aristotle Mainnet With Largest Day-One Ecosystem for Decentralized AI. Retrieved from
https://www.benzinga.com/pressreleases/25/09/47803212/0g-labs-launches-aristotle-mainnet-with-largest-day-one-ecosystem-for-decentralized-ai
LBank. (2025).
What Does TGE (Token Generation Event) Mean in Cryptocurrency? Retrieved from
https://www.lbank.com/zh-TC/academy/article/ar8fsp1745456923-testurl
GlobeNewswire. (2025).
Aster’s Next Era Begins: Airdrop Points Stage 2 Live, TGE Countdown Begins. Retrieved from
https://www.globenewswire.com/fr/news-release/2025/09/08/3146358/0/en/Aster-s-next-era-begins-Airdrop-points-stage-2-live-TGE-countdown-begins.html
Gate.io. (2025).
BlueWhale AI Plans 2025 TGE with Staking APY Up to 180%. Retrieved from
https://www.gate.com/zh/post/status/13895132
CoinGlass. (2025).
What is a TGE? Retrieved from
https://www.coinglass.com/zh-TW/learn/what-is-tge-tw
Blockchair. (2025).
Aster’s Next Era Begins: Phase 2 Airdrop Goes Live, TGE Countdown Starts. Retrieved from
https://blockchair.com/zh/news/59559--8c83b4f6aaf15ef8
CoinCatch Team
Disclaimer:
Digital asset prices carry high market risk and price volatility. You should carefully consider your investment experience, financial situation, investment objectives, and risk tolerance. CoinCatch is not responsible for any losses that may occur. This article should not be considered financial advice.
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