What Is Bundling?

Bundling refers to a practice where developers, insiders, or a select group of early participants acquire a significant portion of a token's supply at or before its launch. This is typically done in a manner that concentrates tokens in a few wallets, rather than distributing them widely among the broader community. The "bundled" wallets, often controlled by a small group, hold a disproportionate share of the supply—sometimes exceeding 10-20% of the total tokens. This can create a power imbalance, allowing these individuals to manipulate the token’s price, dump tokens for profit, or exert outsized influence over governance decisions.

The issue with bundling is its impact on transparency and fairness. When large portions of the supply are concentrated, it can discourage broader participation and undermine trust in the project. Retail investors, who may not be aware of such practices, can be left vulnerable to market manipulation. This practice can lead to a loss of confidence in the project, reduced long-term community engagement, and ultimately harm the project's reputation in the decentralized finance (DeFi) space. Tools like Bundle AI Bot aim to combat bundling by providing real-time tracking and transparency around such practices.