Understanding Token Launch Misconceptions on Binance
Today I want to clear up a common misconception for you. When a new token is launched, you see headlines like “$VANA is up 2400%!” and based on the first candle’s low and the current price, many people will assume that some lucky person bought it for $1 and others bought it for $25.70.
The reality is this:
When Binance lists a new coin, they determine three key prices before trading begins:
Opening Price
Daily High Price
Daily Low Price
For example, for $VANA, these are the initial values:
Minimum: $1 (usually based on the token’s ICO or Launchpad price)
Maximum: $25.70 (a random number based on CoinMarketCap data or determined by market cap at launch if the token has been listed elsewhere)
Opening Price: ~$21.79
These numbers are pre-set and do not represent actual trading activity. The "low price" generally reflects the price paid by ICO or early investors, while the "high price" is largely arbitrary and influenced by factors such as early market predictions.
The percentage increase you see (e.g. 2400%) simply measures the difference between the ICO/Launchpad price and the current market price. This does not mean that someone bought at the extremely low or high price listed. Once trading begins, everyone buys at the starting market price - there is no magic $1 entry point.
Why this is important
Don't be misled by exaggerated percentage gains. These numbers reflect the returns of ICO or seed investors, not retail traders who enter after listing. Understanding how Binance sets these three prices will help you make smarter and more informed decisions.
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