Unlike Initial Public Offerings (IPOs) in traditional finance, Token Generation Events (TGEs) in Web3 can take place at any time without the need for a project to reach a specific milestone. This weak correlation between success and exit in Web3 leads to significant incentive misalignment issues, with many market participants pursuing short-term returns that do not require long-term success. The lack of transparency and regulation in the cryptocurrency space allows 'predatory' behavior to not only profit, but often go unpunished.

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