Binance has announced the launch of a token sale mechanism on Binance Wallet, introducing the bonding curve model for the first time—similar to pump.fun! This is a strategic collaboration with four.meme, a platform for issuing memecoins on the BNB Chain. The system is set to officially launch on July 15, 2025!
A bonding curve is a dynamic pricing model where the token price gradually increases based on buying demand throughout the sale event. The more participants, the higher the token price will rise. Users will use BNB to acquire tokens, but note: these tokens cannot be transferred immediately; they will be “unlocked” for free trading on Binance Alpha after the event concludes.
Binance aims to create a fair and transparent playground, allowing users to easily participate and explore token prices before official listing. Additionally, this mechanism allows for reselling tokens during the sale, facilitating liquidity and expanding opportunities for more participants.
How Does the TGE Work?
- Purchase Tokens with BNB: Users can order on a first-come, first-served basis. Token prices will increase according to the bonding curve as demand heats up.
- Resell Tokens During the Event: If you want to “take profits” early, tokens can be sold back during the sale, reintroducing them to the market for others to acquire.
- Unlock After the Event: Once the event ends, tokens will be freely tradable on Binance Alpha.
Related: Coinbase Rejects Claims Attacking Binance
Key Points to Note
- No Order Cancellation: Once an order is placed, your BNB will be locked until the event concludes.
- High Risk: Binance warns that the bonding curve model may lead to significant price volatility and uncertain liquidity; users should conduct thorough research (DYOR) before participating.
- Participation Requirements: You need sufficient Binance Alpha Points and BNB in your Binance Wallet. The exchange will also impose purchase limits per individual to ensure fairness.
- Unlocking Time: Tokens can be resold during the event if there are buyers, or you must wait 48-72 hours after the event to trade freely.
Prepare for an exciting opportunity in the crypto space with Binance’s innovative approach!