#MarketNewHype
There is a big misconception people have and I would like to clear up some doubts today.
When a new coin is released and it shows a percentage based on the low of that candle and the price the market is currently at, like $VANA , it is up 2400% right now.
The misconception is that people think there are some people who bought at $1 and some at $25.7
When Binance adds a new coin, they have to mention three prices before trading starts:
Opening price
High of the day
Low of the day
For example,#VANAlow is $1 and the high of the first candle was $25.70 and the opening price was around $21.79
The low is mostly based on the ico price of that coin or the launchpad price and the highs are random or based on CMC if it is already trading on other exchanges.
Sometimes both can be just random numbers depending on the market cap at the time of launch.
So the percentage you see on the screen is the difference between the ico/launchpad price and the current market price. It is the percentage that the ico or seed investors made.
As mentioned, they have to add 3 prices before launching, there is no way someone could have bought at $1 or $25.70 when the trade started.
Everyone buys at the price at which the trade starts.
Don't be impressed or surprised by these numbers, know how these things work.
There is a very important detail here: The almost certain danger of the impulse to buy at the high, right at the launch, thinking that it will go up more and more and more and much more, just because the launch candle is huge and probably everyone, except you, "is surfing 🏄 an incredible 🌊 and becoming millionaires, except you". If you believe this and buy based on this concept, your imaginary profit, initial expectation and working capital will go down the drain and the terrible wait for the "miracle" begins.Phase in which you lose patience and wait to “recover”
It’s important!
Stay informed.
