Binance Partners With Four.Meme for New Bonding Curve Token Sales
Binance is set to debut a new token sale mechanism in its Wallet on July 15, introducing a bonding curve pricing model through a collaboration with the Four.Meme ecosystem.
Bonding curves dynamically adjust token prices in response to buying pressure: as more tokens are purchased, the price rises. During these events, tokens remain locked and cannot be transferred until the sale ends, and purchases are final with no option to cancel buy orders.
However, participants will have the option to exit early by selling back into the bonding curve, provided there’s sufficient demand. Otherwise, tokens unlock once the event concludes and can be freely traded if listed on exchanges.
The launch comes as platforms like Pump.Fun and Bonk.Fun continue to thrive.
Pump.fun, which launched in January 2024, has become Solana’s leading memecoin launchpad, facilitating over 11 million token creations and generating upwards of $800 million in fees. The platform uses a bonding curve AMM that locks 80% of token supply to ensure instant liquidity, making rapid token launches and trading possible.
Meanwhile, Bonk.fun has captured over 55% of Solana’s new token issuances. Its unique fee model channels 50% of all platform fees into buying back and burning BONK tokens, effectively removing more than $500,000 worth of BONK daily.
Binance says its own bonding curve model will give early buyers a chance to gain exposure before tokens list on Binance Alpha or decentralized exchanges. Yet the system also introduces volatility and carries inherent risks.
The math behind bonding curves is straightforward but potentially hazardous: if demand spikes quickly, later buyers could pay much higher prices, while early investors selling off could trigger rapid price drops before public trading begins.
Four.Meme, valued at approximately $368 million as of Monday, will be the first project to pilot Binance’s new bonding curve sales via Binance Wallet.
Still, Binance cautioned users through a notice on Binance Alpha that tokens launched using this method may face “increased price volatility, higher risks,” and may lack guaranteed liquidity.
