Binance has introduced a new pricing model for token generation events based on a bonding curve, allowing dynamic price adjustments based on real-time user demand.
New Token Launch Model on Binance
Binance has revealed a new model for token generation events (TGEs) through its Wallet, based on a bonding curve structure. Token prices increase as more users buy during the event window. This model was developed in partnership with the meme coin launchpad Four.Meme and marks a first for Binance.
Live Pricing and Locked Orders
The new format allows users to buy and trade non-transferable tokens with BNB while the event is live. Prices rise automatically based on real-time demand. Once the event ends, the tokens can be transferred and traded on Binance Alpha. Users will not be able to cancel orders once they are placed, and BNB used for purchases stays locked until the event closes.
Memecoin Launchpad Competition and User Risks
The update comes as competition grows between meme coin platforms. LetsBONK has recently surpassed Pump.fun in token launches and trading volume on Solana. User caution remains important, as demonstrated by a recent case where a user lost $75,000 in PUMP tokens.
Binance's new token launch model aims to enhance pricing mechanisms and improve accessibility for active users in a competitive memecoin landscape.
