What is Bonding Curve Crypto?
Category: Crypto
1Definition
A token pricing model where price automatically increases or decreases based on supply.
2Context
Used in DeFi and token launches. Creates automatic price discovery.
3Example
On a bonding curve, buying tokens raises the price; selling lowers it automatically.
⚠Common Trap
Bonding curves can create pump-and-dump dynamics—early buyers profit at later buyers' expense.
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