Binance has revealed a major innovation with the launch of new cryptocurrencies. It introduced the Token Generation Event (TGE) model based on the bonding curve, integrated directly into the Binance wallet.
The new model will be launched in collaboration with Four.meme, with the first project being revealed on July 15 through the official Binance Wallet X account.
Launch of the new TGE model on the Binance Wallet with Four.Meme
The launch represents a significant shift from traditional fixed-price TGEs by offering real-time token pricing based on demand.
This mechanism allows users to purchase tokens using BNB, with prices dynamically adjusted along a pre-defined curve based on the amount of tokens purchased.
"Binance is honored to present a new model for the Token Generation Event (TGE) on the Binance Wallet... a dynamic pricing approach that adjusts token prices based on demand," as stated in an excerpt from the announcement.
As the number of participants in the event increases and tokens are purchased, the price rises, providing a transparent distribution method that responds to market demands. Tokens will remain non-transferable and tradable only within the Bonding Curve ecosystem during the subscription period.
Users have two main options: sell their tokens to others during the event or hold onto them until the event concludes. In the latter case, the tokens become fully transferable and tradable on the Binance Alpha platform. This model offers several key advantages:
Early access to trading: Participants can engage in trading tokens before official listings.
Dynamic participation: Users can re-enter the market if original buyers sell the tokens again, increasing accessibility.
Transparent pricing: Prices are controlled through a clear demand-based algorithm, reducing manipulation and enhancing fairness.
Binance to transform token launches
The TGE process will follow a multi-stage approach, starting with purchasing tokens through a first-come, first-served basis.
If the maximum is reached, additional buy orders can be executed if current participants sell their tokens, ensuring continued availability.
Binance added: "All incomplete orders and unused BNB will be refunded at the end of the event."
To qualify, users must hold enough alpha points from Binance and maintain a sufficient balance of BNB in their Binance wallet. It is worth noting that there are concerns about the significant increase in the alpha distribution threshold from Binance, leading to speculation among traders about rising costs and accessibility.
However, Binance confirmed that once a buy order is placed, it cannot be canceled, and users must accept the volatility and risks associated with real-time price adjustments.
The new TGE model highlights Binance's ongoing efforts to reinvent token distribution mechanisms. This is particularly evident amidst the significant rise in meme coins and retail-focused launches.
By integrating the event into the Binance Wallet and linking it to a direct bonding curve, the exchange aims to provide users with a fairer, more transparent, and appealing launch experience.
