《Binance Wallet Bonding Curve New Project Interpretation》
Binance Wallet @BinanceWallet just officially announced a collaboration with @four_meme_ to launch a new project based on Bonding Curve tomorrow.
Let me explain the gameplay and speculate on the reasons behind the creation of this product.
📶 Gameplay Interpretation:
The characteristic of Bonding Curve token sales is that the more people buy, the higher the token price; the price is not fixed and changes with supply and demand.
Once the new project starts, those who buy in earlier will have a lower token cost. During the new project launch, you can buy in at any time, sell to others at any time, or hold on until the Alpah listing for trading.
This gameplay will be familiar to those who participated in @aspecta_ai before; Binance Wallet's version is simpler, without any lottery or similar mechanisms, just market cap self-regulating pricing after the opening.
Several points to note:
1. There is still a points threshold.
2. Participation with $BNB, finally empowering $BNB.
3. If the subscription limit is reached and all tokens are sold out, you can still place a buy order but cannot cancel it until the end.
🛜 Why do this?
In recent times, Lion Brother and some partners have discussed the current predicament Alpha is facing:
That is, there are fewer and fewer quality projects willing to accept direct Alpha through airdrops or oversubscribed IDOs. Many projects launched recently are unheard of, and their quality is certainly limited.
Is it a lack of projects? Not really; just look at the Kaito pre-TGE leaderboard, and you will find that a large number of quality projects are still waiting for the right TGE opportunity.
Why are they unwilling to participate in Alpha token listings? -- Because of the limited market cap, it’s not cost-effective for project parties and VCs.
Once they go through Alpha's makeshift TGE, it becomes increasingly difficult to climb the ladder for contracts or even spot trading. Therefore, many project parties choose to wait for an opportunity.
This way, it is only natural for Binance Wallet to create the Bonding Curve new project, as this model's biggest feature is: before the official TGE, it allows retail investors to release purchasing power in advance, achieving value discovery (valuation increase).
As a result, many projects can achieve the goal of launching at a relatively acceptable valuation, providing an explanation for VCs. The issue of a shortage of quality Alpha projects can also be resolved, allowing Alpha to expand for a while.
If the previous fixed valuation IDOs were like a discount sale, then the current IDOs are like an auction. Previously, participation guaranteed profits, but now unless you grab early, you need to think about whether the shares you buy will still have value after the opening.
If you still charge in recklessly, pushing a project that is only worth 20M to 100M before TGE, then those who bought early can simply “pour a friend,” ultimately keeping the price at a position that the market can generally accept.
*⃣ Is it worth doing?
Of course, new models always need a demonstration effect, so I suggest that as long as there are points, you should still get involved.
Will you become the last person left holding the bag?
You should know that the total number of tokens available for sale is limited, meaning that even if they are all snatched up, the price increase will still have a cap.
If you are Binance and want the first model project to succeed, what would you do? Yes, even if the price hits the ceiling after launch, there should still be profits, right?
I guess this is likely the script; the first project will eventually have a market cap that, due to value discovery, is higher during the new project stage than other traditional IDOs, but still has some profit after going live.
What this project is has not been revealed yet, and to be honest, I’m quite curious.
