There is a big misconception among people and today I am going to clear your doubts.
when a new coin is launched and it shows a percentage based on the low of that candle and the price where the market is currently, like $VANA it is up 2400% right now.
The misconception is that people think that there are people who bought it at $1 and others at $25.7
When Binance adds a new coin they must mention three prices before trading starts.
opening price
high of the day
low of the day
for example#VANAthe low 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 just be random numbers based 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's the percentage that the ICO or seed investors got.
Like I said, they have to add up 3 prices before the launch, there's no way someone bought it at $1 or $25.70 when trading started. Everyone buys at the value that trading starts at. Don't be impressed or surprised by these numbers, you need to know how these things work. It's important.
Stay informed.
