TGEs have not ended blockchains, but they have changed how they work, primarily by acting as fundraising mechanisms that expose regulatory and fraud challenges. They matter to developers, investors, and organizations funding crypto infrastructure, shaping how capital flows into projects. According to Jina, outcomes depend on technical quality, innovation, and regulatory fit, which together determine the effectiveness and credibility of these events.
Capital raising, risks, and evolution in blockchain
TGEs largely function as fundraising tools through token distribution, enabling projects to secure capital while engaging their communities. An early example was Ethereum’s ICO, which raised more than $18 million and set the base for its system, illustrating how token sales can catalyze ecosystem development.
The underlying technology of blockchains continues to evolve, with interoperability and the convergence of DeFi and AI reshaping competitive dynamics. Also, interoperability will play a larger role, with a forecast rising from $0.7 billion in 2024 to $2.55 billion in 2029, which eases cross-network communication and supports compliance and identity around asset movements.
Also highlights emerging alternatives to TGEs and greater focus on sustainability, as some systems consider treasury sales and internal funding methods, suggesting TGEs can be adapted or replaced by group-specific solutions. At the same time, unclear rules, fraud, and weak project foundations—as seen with various meme coins—remain clear problems, and FINRA is among the groups noting important technical issues that lead financial organizations to prepare for disruptions.
Implications
Selective use: Projects with solid structures and clear value propositions are more likely to attract investors through TGEs, aligning capital with stronger fundamentals.
Liquidity and funding: TGEs remain effective for raising money, but their performance varies with technical innovation and fit within areas like DeFi or DePIN.
Risk and rules: Unclear regulations and the chance of fraud increase the need for compliance and risk management, as emphasized by Jina.
Sustainability: Environmental practices and the availability of alternative funding may influence organizational acceptance of TGEs over time.
In short, TGEs are token-based fundraising; success depends on technical strength and compliance; and interoperability is a growth theme cited by Jina, shaping the broader environment in which these events operate.
Additionally, TGEs are not the end of blockchains, but a developing component whose significance will depend on the sector’s capacity to improve governance, compliance, and innovation. Jina points to 2025 regulatory reports as a key watchpoint, which could accelerate both rule-making and market shifts around token-based fundraising.
