【Binance Wallet TGE: Bonding Curve / Internal Market Mechanism Explained】
Before participating in today’s Binance Wallet TGE, here’s everything you need to know about this new fundraising mechanism:
The biggest difference between "Bonding Curve TGE" and the previous TGE model is that:
This model will not over-raise funds, and the price fluctuates with the purchase time. In most cases, the earlier you buy, the lower the cost and the higher the returns.
1️⃣ Pricing Mechanism:
The subscription price is no longer fixed, but increases with the amount purchased, completely driven by the market. The earlier you buy in, the lower the cost of your tokens.
2️⃣ Allocation Mechanism
Previous model: Subscription amount / Total subscription amount, proportionally allocated, with excess funds automatically refunded.
Bonding Curve model: First come, first served. After the total subscription amount reaches its limit, you need to wait for others to sell before your transaction can be completed, preventing over-raising.
3️⃣ Pre-market Liquidity
You can buy and sell during the subscription period, which is the internal market mode of pumping. However, the wallet has a subscription limit for each account, providing investors with a flexible exit mechanism.
💡 This model is more PVP, but it also has many benefits:
➤ For investors:
No need to worry about over-raising, purchasing power is released in advance, and you can choose your exit timing based on your judgment, providing higher autonomy, but it also requires more DYOR. The timing of buying and selling during the subscription period will also affect profits and losses.
➤ For project parties:
There are no market-making costs in the early stage; the price is the fundraising amount, providing early liquidity and price discovery. Compared to previous models, the valuation cap using Bonding Curve is higher, and high-quality projects are more willing to go on Alpha.
👉 This is the first phase of the internal market mechanism adopted by Binance Wallet.
This phase $RION is the largest liquidity protocol on Aptos, Hyperion @hyperion_xyz, which carries most of Aptos's liquidity.
With the new model for fundraising, the returns are expected to be good. The internal market is highly likely to hit the ceiling, and there may still be profits after the opening. We will review the specific results this afternoon 😄
