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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