Binance Wallet's New TGE Rules Research: Where Are the Opportunities for Retail Investors?

July 14th, Binance Wallet announced a collaboration with Four.Meme to launch an exclusive Bonding Curve TGE

July 16th, The first new regulation TGE project, @hyperion_xyz (RION), began TGE, from 4 PM to 6 PM (UTC+8).

With this new mechanism, are there still opportunities for us retail investors? The following analysis will explore three directions:

What is this Bonding Curve?

Characteristics: It can be understood as the internal and external market form of Pump.fun. The Bonding Curve phase is like the internal market, while post-TGE is akin to the external market.

• Early buyers get the tokens at a cheaper price, and as more people buy, the token price increases, fluctuating freely according to supply and demand (similar to the internal market of pump).
• During the new listing process, one can freely buy or sell within this internal market until the event ends, after which trading on the external market becomes possible (graduation launch).

Official description:

• During the subscription period, purchased tokens can be sold to other participants within the Bonding Curve ecosystem (however, once BNB is deposited, it will be locked and cannot be withdrawn).
• After the event ends, the tokens become freely transferable and tradable on Binance Alpha.
• If the subscription cap is reached and all tokens are sold out, you can still place a buy order, but it cannot be cancelled until the end.

Why did the official adopt this new mechanism?

Dilemma faced by Alpha:

There are fewer quality projects willing to directly list on Alpha via airdrop or oversubscribed IDOs. Project parties need to start with a low valuation to attract attention, making concessions to retail investors, which is more costly.

Core objective: To have retail investors drive up the price and valuation, benefiting investors, ensuring higher quality for projects participating in Binance TGE.

Before the official TGE, allow retail investors to release their purchasing power early to achieve value discovery. Make those in the internal market experience FOMO (fear of missing out), leaving the external market to buy high.

What should ordinary investors do?

During the Bonding Curve internal market period, the earlier you enter, the lower the price. For studios, this is paradise; they can use tools to quickly inject funds into the Bonding Curve system. As participation gets later, the cost increases, meaning less benefit for ordinary users. After TGE launches, the valuation of coins will also be higher, and the probability of projects like$M $C being willing to pump decreases.

For ordinary investors, the sooner they participate, the better, but it depends on the project. Post-TGE pumping efforts will also decrease, so caution against excessive FOMO buying after listing.

In summary, this mechanism is more beneficial for project parties and studios, reducing benefits for ordinary users.

Author: Sakura, ChainThink

Editor: Charlie, ChainThink