When a new coin launches on Binance, you may see impressive percentage increases, but here's what's really happening:
The Misconception
Many believe that some investors buy the coin at the lowest price (e.g., $1) and others at the highest price (e.g., $25.70). However, this isn't the case.
The Reality
Before trading begins, Binance sets three prices:
1. Opening price
2. High of the day
3. Low of the day
These prices are often based on:
- ICO or launchpad price (low)
- CoinMarketCap data or arbitrary numbers (high)
What the Percentage Increase Really Means
The percentage increase reflects the returns made by ICO or seed investors, not individual buyers. Everyone buys at the opening price, not the low or high price.
Stay Informed
Don't be misled by impressive percentage increases. Understand how new coin launches work on Binance.
Stay informed and stay smart!#BinanceSeason #BTCNewATH