Why can the newly launched coin be purchased at a low price of $1 with a strong upward trend?
Whenever a new coin is launched, you will notice the percentage increase from the lowest point of the first candle to the current price. For example, the coin AVNA rose by 2450%, and many people think that those who bought it at $1 must have made a fortune, but that's not the case.
The truth is that when Binance adds a new coin, they must provide three prices before trading starts:
1. Opening price
2. Highest price of the day
3. Lowest price of the day
The lowest price of VANA is $1, the highest price of the first candle is $24.78, and the opening price is around $21. The lowest price is usually based on the ICO or issuance platform price, while the highest price is random or based on CoinMarketCap (if the coin has been traded on other exchanges). Sometimes, both the lowest and highest prices are arbitrary numbers, depending on the market value at the time of issuance.
The percentage you see is merely the difference between the ICO/issuance platform price and the current market price. It reflects the return obtained by ICO or seed investors.
As I mentioned, Binance must set these three prices before trading starts, so no one actually buys at $1 or $24.78 when trading begins. Most people actually buy at the opening price.
Don't be misled by these numbers; to put it simply, you couldn't buy it at $1 when it just launched; by the time you see it, it has already risen by about 2450%. $VANA
