In its partnership with the Four.Meme ecosystem, released on July 15th, Binance will introduce a new token sales model within its wallet, utilizing a binding curve mechanism for price discovery.
The bond curve adjusts the price of the token in real time based on demand. The more users make a purchase, the higher the price. Tokens purchased during the event cannot be transferred until the sale ends and the buy order cannot be cancelled.
This announcement comes as a view of the tokens Launchpads pump.fun and bonk.fun, as they look at the ever-growing volume and user interest.
Pump.Fun was launched in January 2024 as Solana’s best Memecoin Factory, processing over 11 million token creations and generating more than $800 million in fees. Bonding curve AMM allows anyone to launch a token and lock 80% supply to ensure immediate liquidity. Turn your ideas into trading coins instantly and allow clicks to access “Virus Memokin.”
Bonk.Fun was torn to the lead and won over 55% of Solana’s token issuance. This has spurred the fee structure that directs 50% of the fee to Bonk’s buyback and burns.
Binance said that its dynamic system allows early participants to gain exposure before the list of Binance Alpha or Dexs. Still, it locks capital during the event and introduces price volatility from the start
Users can finish early by returning to the bonding curve before the event ends, assuming there is demand. Otherwise, the token will be unlocked at the end and will be free to trade if listed.
Mathematics is simple, but dangerous. If the curve surges rapidly, slower entrants pay heavily. If early participants throw away, prices could collapse before the list begins.
The Four.meme ecosystem was valued at around $368 million as of Monday, making it the first to test the format in a Binance wallet.
You may not always be rushed to buy in a hurry where the token is activated. Binance Alpha warnings warn users that these tokens are associated with “higher price volatility, higher risk” and that liquidity is not guaranteed.
