TGE allows decentralized application owners to raise funds by issuing tokens. At the same time, owners do not have to have their own blockchain network - they can create their own tokens in other networks.
With TGE, owners are required to indicate what type their tokens are: utility token or security token. The former provide access to certain services of the company that produces them. For example, you can access a closed customer database, scientific information, and so on. Some companies attach voting rights or the possibility of receiving dividends to such tokens. The second type, security token, includes tokens that receive value from the tradable assets pledged in them. Such tokens can be created for exchange-traded shares, bonds and other securities. They are traded on crypto exchanges in much the same way as ordinary securities.
The main difference between TGE and ICO is that token holders are not necessarily the owners of the blockchain. While ICO involves the launch of the blockchain and the distribution of digital coins that are in circulation.
The second important difference is that a token is a digital signature for some object - material or digital. While a digital coin is an asset in itself, whose rate is quoted depending on its popularity and prevalence.
The third difference is that tokens can be transferred from one blockchain to another with virtually no loss in value - especially if there is a real asset behind the token. Digital coins can also be transferred to other blockchain networks, however they lose their value.
Many users believe that ICO and TGE are essentially the same process and should not be different. Also, there is a lack of legal regulation of most types of tokens - when buying them, no one guarantees you that you are buying the right to any asset.
