Letโs debunk a common misconception surrounding new coin launches and the eye-popping percentage gains often advertised on platforms like Binance. Many traders misunderstand how these figures are calculated and what they truly represent. Hereโs the reality you need to know:
๐ Binanceโs โThree Pricesโ Before Trading Begins
When Binance lists a new coin, it establishes three key prices ahead of trading:
1. Opening Price: This is where trading officially kicks off.
2. Low of the Day: Often tied to the ICO or launchpad price, but this is not a price you can actually trade at.
3. High of the Day: This figure may depend on market cap at launch, prior trading on other platforms, or sometimes random pre-market factors.
These prices are determined before trading begins, meaning they do not reflect real buy or sell opportunities for traders.
๐ How โ2400% Gainsโ Really Work
When you see claims like โ+2400% gains,โ itโs critical to understand how this percentage is calculated:
The increase is measured from the low price (usually the ICO or seed round price) to the current trading price.
These gains represent profits for early-stage investors who bought at seed or ICO levelsโnot for regular traders buying at the official launch.
For Example:
If the seed price (low) is $1 and trading opens at $21.79, the โ2400% gainโ is based on the $1 priceโnot what traders paid at launch.
โ The Reality: No One Buys at the โLowโ
Itโs impossible for anyone to buy at the dayโs โlowโ or sell at the โhighโ when trading starts because:
The โlow priceโ is pre-market and restricted to early investors.
The โhigh priceโ often reflects pre-existing market data or market cap projections.
Regular traders only start trading at the opening price set by the exchange.
๐ก Why This Matters for Traders
Understanding these mechanics will help you see past the hype and avoid unrealistic expectations. Instead of focusing on inflated percentages, pay attention to:
The opening price, where actual trades happen.
The market cap, liquidity, and fundamentals of the project.
Stay informed, trade smart, and donโt get swayed by misleading claims. Knowledge is your greatest asset in the crypto market. Just look at todayโs example: $VANA .
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