On July 14, Binance Wallet announced a joint exclusive Bonding Curve token launch event (TGE) with Four.Meme.

On July 16, the first phase of the new TGE project @hyperion_xyz (RION) began subscription, with specific time from 4 PM to 6 PM (UTC+8).

For this new mechanism, do retail investors still have opportunities? The following will analyze three directions in detail:

What is this mechanism?

Features: It can be understood as the inside and outside market forms of Pump.fun. The Bonding Curve period is the inside market, and after TGE it becomes the outside market.

• The early buyers get the tokens cheaper, the more people buy, the higher the token price, and the price will freely fluctuate according to supply and demand. (Similar to the inside market of Pump)
• During the new token subscription process, you can freely buy or sell tokens to others within this inside market until the end of the activity, after which you can trade on the outside market (graduation launch)

Official description:

1. During the subscription period, the tokens purchased are sold to other participants within the Bonding Curve ecosystem (but after depositing BNB, they will be locked and cannot be withdrawn).
2. After the activity ends, the tokens become freely transferable and can be traded on Binance Alpha.
3. If the subscription cap is reached and all tokens are sold out, you can still place a buy order, but you cannot cancel it until the end.

Why does the official use this mechanism?

Current dilemma of Alpha:

Fewer high-quality projects are willing to directly list on Alpha via airdrop or oversubscribed IDO. Project teams need to open at a low valuation to pump the price and create hype, which requires giving more benefits to retail investors, increasing the cost.

Core purpose: Retail investors pump the price, push up valuations, which is more beneficial for investors, ensuring higher quality of projects participating in Binance TGE.

Before the official TGE, let retail investors release their purchasing power in advance, achieving value discovery. Let those in the inside market feel FOMO, and the buyers in the outside market.

What should ordinary users do?

During the Bonding Curve inside market period, the earlier you enter, the lower the price. For studios, it's a paradise; they can use tools to immediately inject funds into the Bonding Curve system. Since the price increases for later participants, ordinary users get less meat, and the valuation of the token after TGE will also be higher. The probability of projects like $M $C that are willing to pump the price will decrease. For ordinary users, the earlier you participate, the better. However, it still depends on the project, and the pumping power after TGE will also decrease, so be cautious about buying tokens due to excessive FOMO after the launch.

Summary: More advantageous for project teams and studios, and less benefit for ordinary users.

Author: Sakura, ChainThink

Editor: Charlie, ChainThink