I realized while chatting with friends that quite a few people haven't quite got their heads around this.
These days, launching a Meme coin on a public blockchain like Solana takes just a few minutes: pick a name, upload an image, and your new coin is live. This is made possible by one-click token-launch platforms and a pricing method called a “bonding curve.”
Related token: $SOL Current price: 89.62 (24h -0.79%).
How are bonding curves priced:
A bonding curve is a formula that sets prices based on the number of tokens already sold: the more people buy, the higher the price goes; when someone sells, the tokens return to the curve and the price falls accordingly.
The key feature of this approach is that no one needs to provide initial liquidity at launch, and tokens can be bought or sold at the price set by the curve at any time. That’s why many platforms promote it as a “fair launch”: no presale, and everyone buys along the same curve.
What does “graduation” mean?
Once the funds accumulated along the curve reach a threshold set by the platform, the token “graduates”: the remaining tokens and funds are moved together to a liquidity pool on a decentralized exchange, where the token is then traded on a DEX like any other.
The vast majority of tokens never make it this far. Early data published by one platform showed that only about one percent of newly created tokens completed “graduation.”
The problem behind the idea of fairness:
Buying along the same curve doesn’t mean everyone gets the same price. Addresses that buy earlier pay less, so bots often rush to buy in the first few seconds after launch. Some creators also buy a large amount themselves at launch.
“Graduation” only means that the token has raised enough funds along the curve. Liquidity on the DEX is often still very thin, so the price can remain highly volatile.
What to check before participating:
Before buying, check how much the creator holds and whether ownership is overly concentrated among the top addresses. A newly launched coin that has surged rapidly could also plunge back down within minutes, so be especially cautious about how much you invest.
Don’t click suspicious “new coin links” from unknown sources in chat apps. Phishing pages often impersonate token launch platforms and trick you into connecting your wallet or signing an authorization.
A final thought:
The easier it is to launch a token, the more new tokens appear—and the fewer are likely to stick around. Understanding the rules matters more than chasing every new name. Don’t invest borrowed money; the stress can push you into making bad decisions.
If anything’s unclear, ask me in the comments.
Just sharing my thoughts—make your own decisions about buying and selling.