Bonding Curve
A pricing formula that automatically changes a token’s price based on how many tokens have been bought or sold.
A bonding curve is a smart contract design that sets a token’s price using a predefined mathematical formula. Instead of relying first on an exchange order book, the contract mints tokens when people buy and burns or returns tokens when people sell, with the price moving along the curve. In many memecoin launches, a bonding curve is used to create an early market before the token is listed on a decentralized exchange.
It matters because the curve controls how quickly the price rises as demand increases, how much liquidity is available for selling, and how early buyers and later buyers are treated. For example, a simple upward-sloping curve might make each new memecoin purchase slightly more expensive than the last, similar to tickets becoming pricier as seats fill up. Once a preset funding or liquidity target is reached, the token may “graduate” to a regular liquidity pool, where market trading takes over.
Other terms in Memecoins
Dev Wallet
A wallet controlled by a token’s creator or team, often used to hold supply, fund development, add liquidity, or manage launches.
Meme Cycle
A recurring pattern where attention, humor, social media buzz, and speculation push memecoins or meme themes through rapid rises and fades.
Memecoin
A memecoin is a cryptocurrency inspired by an internet joke, meme, or community trend, often valued more by social attention than technical utility.
Pump and Dump
A coordinated scheme where a token’s price is artificially inflated, then sold off by insiders for profit, leaving late buyers with losses.