tl;dr
Binance has introduced a new pricing model for token generation events (TGEs) within its Wallet, using a bonding curve where token prices rise as more participants buy tokens. Developed with meme coin launchpad Four.Meme and inspired by Pump.fun, this is Binance's first use of such a model, with the...
Binance has launched a novel pricing model for token generation events (TGEs) within its Wallet, adopting a bonding curve structure where token prices increase as more participants buy during the event. This model draws inspiration from the mechanisms used by Pump.fun and was developed alongside meme coin launchpad Four.Meme. Binance highlighted that this marks its first implementation of such a pricing strategy, with the inaugural project announcement scheduled for July 15 via the Binance Wallet X account.
During the event window, users can purchase and trade non-transferable tokens using BNB, with prices dynamically adjusting based on real-time demand. Orders are locked in and irreversible once placed, and funds used for the purchase remain locked until the conclusion of the event. Following the event's close, tokens become transferable and tradable on Binance Alpha. This structure aims to provide a transparent mechanism for establishing token value prior to their full market listing.
Participation requires users to hold both Binance Alpha Points and BNB in their Wallet. Alpha Points serve as part of Binance’s internal eligibility scoring system, rewarding platform activity to ensure fairer access and reduce automated trading during TGEs. Binance maintains that this system offers users a clearer and more equitable way to engage in early-stage token sales.
This development arrives amid intensified competition among meme coin launchpads, with platforms like LetsBONK recently surpassing Pump.fun in both token launches and Solana-based trading volume. Nevertheless, user risk remains a pressing concern, exemplified by an incident reported by analytics firm Lookonchain where an individual suffered a $75,000 loss in PUMP tokens.