What is a Token Generation Event? When Indirect Favor Capital will launch a TGE?
Originally, the term “Initial Coin Offering” was used to refer to the primary issuance of cryptocurrency tokens to the public as a fundraising mechanism. However, due to regulatory concerns about the ICO being modelled after an IPO (Initial Public Offering) and implied as an investment vehicle, some projects have begun to use other names. Token Generation Event (TGE) is one such concept.
*A Token Generation Event (TGE) or Initial Token Offering (ITO) — is a way to distribute tokens to the first owners. It also marks the time at which a certain cryptocurrency was issued. This could be through a pre-sale, through an ICO, as a mining reward. It is a business and technical act of limited duration, which includes the technical generation of a token in a blockchain-based network and its launch on prominent cryptocurrency exchanges and markets. The primary aim of a token generation event is to raise funds, create an engaged community, and raise awareness of tokens in multiple markets. The more involved the community of token investors is, the more successful TGE can be. In today’s environment, many crypto projects are abandoning fundraising through ICOs and opting instead to conduct TGEs because of the regulatory issues, implications, and rigours associated with ICOs. An important point is that funds raised through token generation events are not taxed.
Russian lawyer Evgeny Ryabov explained the difference between ICO and TGE concepts for clear understanding: “Not every token is a cryptocurrency, but every cryptocurrency is a token. If a crypto market participant creates a token that has the properties of a means of payment (money), then it makes sense to talk about Initial Coin Offering — initial placement (issue) of coins. If a token has properties of an investment instrument or a full-fledged product (token brings benefits to its owner “here and now” from the use of its properties), then it makes sense to talk about Initial Token Offering — initial token offering, i.e. using a more general concept. Thus, ICO is a kind of ITO, and using the first term when placing tokens that do not have the properties of cryptocurrency is hardly successful (first of all for the token generator itself)”. (https://pravo.ua/articles/post-kriptum/)
The crowdfunding platform Indirect Favor Capital is planning to launch a brand token FAVOR at the beginning of 2022.
About Indirect Favor Capital
Indirect Favor Capital is a new system of DeFi crowdfunding, where you can support innovative ideas of small and micro-businesses or even non-profit projects. Moreover, the company provides you with opportunities to generate, expand and realize your startup!
We have created a brand new terminology for participation. Our token is called FAVOR. Favorite — is a newcomer startup. For this, you must create a farm called Favor Well on the platform. Comrades serve as investors to support the innovative projects on the Favor platform. They will be able to choose from different farms to stake the FAVOR TOKEN or LP tokens within the desired Favor Well.
Our company’s purpose is to help you and your unique business get off the ground. And give you the opportunity to try your hand as an investor and support fresh startups. Together with Indirect Favor Capital you power your enthusiasm and get inspired to create new projects! Follow our latest news on the website and social networks!
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