Have you ever wondered how the classic rules of *supply and demand apply in the crypto digital world?*
*Let's discuss the Bonding Curve* - a simple idea that connects the price of a token with the amount available.
*Here's the problem:*
The more tokens that are bought, the price usually goes up. When tokens are sold or taken out of circulation, the price tends to go down. This setup often benefits early buyers and active traders.
*There are 3 main types of bonding curves:*
š¹ Linear ā the price rises steadily, like a gentle and straight hill.
š¹ Exponential ā the price rises increasingly faster, making the hill steeper as it goes higher.
š¹ Logarithmic ā the price spikes quickly at first, then flattens out like a plateau near the peak.
Curious to learn more? Read the full story here:
@milyaderboy