In yesterday's TGE, those who were quick sold for 450 USD, so many new friends are asking how to participate in the TGE. This article aims to clarify that for everyone.

1. First, let me explain the basic gameplay of the TGE activity; those who understand can skip ahead.

TGE is an abbreviation for Token Generation Event, which refers to the generation of new tokens and their sale in the market.

Using terms everyone is familiar with, it's a type of new token gameplay: you give BNB to the project party, and they sell you the new tokens.

Taking the last two days' #Bitlayer as an example, the project party issued a total of 20 million BTR, with a selling price of 0.00002 BNB for one BTR, expecting to raise 495 BNB.

Because these TGE projects are selected by Binance, and the project parties typically sell the first wave of tokens at very cheap prices. For the recent BTR, the pre-market price was 0.15 USD, but the selling price during the TGE was 0.02 USD, so buying in basically guarantees a profit.

Therefore, to participate in the TGE, Binance has set the first threshold: you need to have enough Alpha points to participate. For the recent BTR example, only those with Alpha points exceeding 230 can participate.

If you meet the threshold, you can directly pay BNB to participate during the TGE. Due to the high number of participants, there are two rules for the TGE:

(1) Each account is limited to purchasing 3 BNB;

(2) If too many people buy and exceed the project party's sale limit, then everyone will be distributed proportionally.

Taking the last two days' $BTR as an example, the project party only prepared 20 million BTR, intending to raise 495 BNB, but ended up raising 50,000 BNB. So in the end, everyone gets distributed proportionally, and each person can buy about 1% * 3 BNB of BTR, which is about 1300 BTR.

At the same time, the remaining 99% * 3 BNB that didn't buy tokens will be refunded to everyone, amounting to about 2.97 BNB.

Therefore, for those who participated in the BTR TGE and paid 3 BNB, they will ultimately receive the 1322 BTR they bought and get back 2.967 BNB.

From this rule, we can see the second threshold for participating in the TGE: you need to pay 3 BNB (about 2500 USD) to the project party.

2. Binance's TGE has 3 types of gameplay: ordinary TGE, Pre-TGE, and Bonding Curve TGE.

The other 2 types of gameplay are variations of the ordinary TGE. Let me explain the differences among the 3 types of TGE in detail.

1. The ordinary TGE (consuming 15 Alpha points) is the most commonly used model, where each person can purchase a maximum of 3 BNB, and there is no limit on oversubscription. If oversubscribed, tokens will be distributed based on the oversubscription ratio. Binance won't set the Alpha threshold for participating in the TGE too high; it's currently about 300 times oversubscribed. The TGE generally lasts 2 hours, after which users can immediately redeem their untraded BNB and already traded tokens, which can be traded right away.

2. Pre-TGE (consuming 10 points) is a variant gameplay. Each person can also purchase a maximum of 3 BNB, and unlimited oversubscription is accepted. If oversubscribed, tokens will be distributed based on the oversubscription ratio. But as its name suggests, 'pre' means pre-sale; after the event ends, users can't immediately trade tokens. They have to wait until the tokens are officially TGE'd before they can trade, which currently takes about 1 month from participating in the Pre-TGE to being able to sell tokens.

3. Bonding Curve TGE (consuming 15 points) is a more complex gameplay. The last Rion was this type of gameplay, where players earned 300 USD, leading many to ask how to play. This gameplay is:

(1) No unlimited oversubscription will be accepted, and sales will stop once sold out; how much everyone buys is how much they get, first come, first served; (just like selling airline tickets, sales stop once sold out).

(2) During the event, prices fluctuate, and the earlier you buy, the cheaper it is; (more like buying airline tickets).

(3) Those who come late can queue up and see if those who bought earlier have sold their tokens (similar to airline tickets, just see if there are any cancellations).

(4) After the event ends, those who queued up but didn't purchase successfully will have their BNB refunded. Users who successfully buy can trade their tokens immediately.

3. How much can you earn from the TGE?

How much can you earn from the TGE mainly depends on the oversubscription multiple.

Basically, with an oversubscription of 300 times, a single account can earn about 40 USD.

If the oversubscription multiple is low, like only 100 times, then they might earn a bit more, like 100 USD; if the oversubscription multiple is higher, like 500 times, then they might earn around 25 USD.

In fact, after running the numbers, the TGE returns fluctuate around 40 USD. Because many people rush in with a low oversubscription multiple; once the oversubscription reaches over 300 times, later participants feel there's no profit to be made compared to the airdrop and won't rush in.

But the ordinary TGE has the advantage of not having to compete like with an airdrop; if you participate, you will definitely get something.

4. Some common questions

1. Each person is limited to purchasing 3 BNB in the TGE. If I don't have enough money, can I just buy 1 BNB?

Answer: Yes. However, the tokens you buy are distributed proportionally. If others earn 40 USD, your earnings will be 13.3 USD. Also, you have to deduct 15 points from your Alpha score like everyone else, so you might as well not participate and just go for the airdrop.

2. I see some people say they can borrow BNB; if I don't have enough money, can I borrow?

Answer: If you don't have enough money, you can't borrow. Exchanges are also afraid of people running off, so to borrow BNB, you need to use an equivalent value of USDT as collateral. Those who borrow BNB are using an equivalent value of USDT as collateral. So why don't they just buy BNB instead of borrowing? Because they're afraid the price of BNB will drop and lead to losses. If they buy 3 BNB worth 2500 USD and during the TGE the price drops by 2%, then their 3 BNB would only be worth 2450 USD. They earn 40 USD from the TGE, but lose 50 USD from BNB, which is not worth it.

3. Some say you can just pledge 3 BNB for the TGE without losing money.

Answer: That's because they didn't understand. Previous TGEs often oversubscribed 300 times, so they actually only deducted 0.01 BNB from them. Those who didn't understand thought this was a gas fee deduction and claimed there was no money deducted. In fact, money was deducted; they just didn't realize it.

4. Is the TGE worth participating in?

Answer: If you have 3 BNB sitting in your account, it's worth it because it's better than an airdrop, and you don't have to compete for it. Especially with the Bonding Curve TGE gameplay, the basic returns are generally high. But if you don't have 3 BNB, then there's no need to participate. Don't try to gather multiple accounts; transferring between them might lead to account bans.