#Write2Earn DEMERITS FOR ON BONDING CURVE-BASED TOKEN GENERATION EVENT (TGE)

1. Front-running & Bot Attacks

▪️Since prices change with each purchase, bots can exploit timing to gain unfair advantage.

2. Volatile Prices

▪️Small purchases can quickly raise prices, deterring smaller investors.

▪️Similarly, large sells can crash the price.

3. Complex Curve Design

▪️Poorly designed bonding curves can cause pricing problems (e.g., too steep or too flat).

▪️Not easy for average users to understand.

4. No Price Cap

▪️Early participants may benefit excessively if the price increases too quickly.

▪️Later buyers could feel "priced out."

5. Impermanent Loss (if paired with liquidity pools)

▪️If token is paired with BNB or another asset, liquidity providers may face impermanent loss.

6. Psychological Barrier

▪️Some users are more comfortable with fixed pricing models.

▪️Bonding curves may confuse non-technical participants.

7. Potential Regulatory Risks

▪️Dynamic pricing models could be interpreted differently by regulators in various regions. #Binance