CRYPTO MECHANIC
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There is a big misconception in people and I'm going to clear your doubts today.
when a new coin launched and it shows a percentage based on the low of that candle and the price where the market currently is like $VANA is up 2400% right now.
The misconception is people think there are some people who bought it at $1 and some at $25.7
When binance adds a new coin they have to mention three prices before the trading starts.
opening price
high of the day
low of the day
for example #VANA low is $1 and high of the first candle was $25.70 and the opening price was around $21.79
the low is mostly based on that coin's ico price or the launchpad price and the highs is either random or it's based on CMC if it is already trading on other exchanges. Sometimes both can just be random numbers depending on the marketcap at the time of the launch.
So the percentage you see on screen is the difference between the ico/launchpad price and the current market price. it's the percentage that ico or Seed investors made.
like i said they have to add 3 prices before they launch there is no way someone bought it at $1 or $25.70 when the trading was started. Everyone buys at the value where the trading starts. Do not get impressed or amazed by these numbers, know how these things work. it's important .
Stay educated.
when a new coin launched and it shows a percentage based on the low of that candle and the price where the market currently is like $VANA is up 2400% right now.
The misconception is people think there are some people who bought it at $1 and some at $25.7
When binance adds a new coin they have to mention three prices before the trading starts.
opening price
high of the day
low of the day
for example #VANA low is $1 and high of the first candle was $25.70 and the opening price was around $21.79
the low is mostly based on that coin's ico price or the launchpad price and the highs is either random or it's based on CMC if it is already trading on other exchanges. Sometimes both can just be random numbers depending on the marketcap at the time of the launch.
So the percentage you see on screen is the difference between the ico/launchpad price and the current market price. it's the percentage that ico or Seed investors made.
like i said they have to add 3 prices before they launch there is no way someone bought it at $1 or $25.70 when the trading was started. Everyone buys at the value where the trading starts. Do not get impressed or amazed by these numbers, know how these things work. it's important .
Stay educated.
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