There is a common misconception that I am going to clear up for you today.

When a new coin launches and you see a percentage increase based on the low of the first candle and the current price, for example $VANA increases by 2400%, many people believe that some bought it at $1 and others bought it at $25.70.

Here is the truth: When Binance adds a new coin, they are required to provide three prices before trading begins:

1. The opening price

2. The high of the day

3. The low of the day

For example,#VANAhad a low of $1, a high of $25.70 on the first candle, and an opening price of around $21.79. The low is usually based on the ICO price or the launch price, while the high can be random or based on CoinMarketCap if the coin is already trading on other exchanges. Sometimes both the low and high are arbitrary numbers, depending on the market cap at the time of launch.

The percentage you see is simply the difference between the ICO price/launch price and the current market price. It represents the returns made by ICO investors or seed investors.

As I mentioned, Binance has to set these three prices before trading starts, so there is no way someone could buy it for $1. $VANA