When you see a coin like $VANA showing a massive percentage increase—say, 2400%—based on the low of the first candle and the current price, many assume that some people bought at the low price (e.g., $1) and others at the peak (e.g., $25.70).
Here’s the reality: When Binance lists a new coin, three prices are established before trading begins:
1. Opening Price
2. High of the Day
3. Low of the Day
For example, in the case of $VANA, the low was $1, the high was $25.70, and the opening price was approximately $21.79. The low price often reflects the coin's ICO or launchpad price, while the high price may be random or derived from CoinMarketCap if the coin has traded on other exchanges. In some cases, both the low and high are arbitrary, based on the coin's market cap at launch.
The percentage increase you see is simply the difference between the ICO/launchpad price and the current market price. It represents the returns for early investors, not what people bought or sold for when trading began.
When trading starts, everyone buys at the opening price—not the low or high set beforehand.
Don’t let these numbers fool you—understand how the system works and stay informed.
