- Binance has unveiled a bonding curve powering a new token generation event model
- The bonding curve feature employs a different approach to determine token prices compared to the one used by platforms like Pump.fun
- The feature will be available to Binance Wallet users
Crypto exchange Binance has partnered with Four.Meme to develop a bonding curve feature that powers a new token generation event (TGE) model. The feature employs a different approach to determine token prices compared to Pump.fun and other leading memecoin launchpads. Available to Binance Wallet users, interested token developers will need to first request permission via the wallet before launching a token, a move that aims to limit the number of tokens generated and presumably increase the quality of the launched tokens.
A Dynamic Pricing Approach
Announcing the feature , Binance said the bonding curve mechanism offers a dynamic pricing approach that adjusts token prices based on demand. It further stated that the price adjustment is based on the number of tokens purchased, adding that the pricing starts during the TGE phase.
According to Binance, the price of a token isnt fixed, and tokens purchased within the curve are only tradable within the curve during the subscription period. Traders can also wait for the tokens to be listed on Binance Alpha, a section within Binance Wallet that lists tokens from new projects, if they dont want to trade within the curve.
Binance observed that the new model offers benefits such as increased participation opportunities, fair and transparent pricing, and also allows traders to access tokens before their official launch.
More Challenges for Pump.fun
Binances new bonding curve mechanism comes as popular token launchpad, Pump.fun, continues to lose its market share to upcoming platforms like LetsBonk , further diluting its control. Last week, Pump.fun raised $500 million in an ICO that lasted for about 12 minutes. On Monday, its official token, Pump , was listed for trading on various exchanges.
With Binances new approach requiring developers to seek permission before launching tokens, its to be seen how the community will react to the feature and whether the exchange will maintain it in the long term.
