๐‚๐ฅ๐ž๐š๐ซ๐ข๐ง๐  ๐ญ๐ก๐ž ๐Œ๐ข๐ฌ๐œ๐จ๐ง๐œ๐ž๐ฉ๐ญ๐ข๐จ๐ง ๐€๐›๐จ๐ฎ๐ญ ๐๐ž๐ฐ ๐‚๐จ๐ข๐ง ๐‹๐š๐ฎ๐ง๐œ๐ก๐ž๐ฌ โ€“ ๐Š๐ง๐จ๐ฐ ๐ญ๐ก๐ž ๐…๐š๐œ๐ญ๐ฌ๐Ÿ’ฅ๐Ÿ”ฅ

Thereโ€™s a common misunderstanding among many traders when a new coin launches, and today, weโ€™re going to set the record straight. Often, people see a massive percentage gainโ€”like $VANA showing a 2400% increaseโ€”and assume some lucky individuals bought the coin at $1 while others purchased it at $25.70. This is far from the truth.

When Binance or any major exchange lists a new coin, they must set three reference prices before trading begins:

1. Opening Price โ€“ The price at which trading officially starts.

2. High of the Day โ€“ The highest price reached in the initial candle.

3. Low of the Day โ€“ Often based on the coinโ€™s ICO or launchpad price.

For example, in the case of $VANA, the low is recorded at $1 (reflecting the ICO/launchpad price), the high of the first candle was $25.70, and the opening price was around $21.79. These numbers are either derived from previous market data (if the coin was trading on other exchanges) or are calculated based on the coinโ€™s market cap at launch.

The percentage gain you seeโ€”like 2400%โ€”is simply the difference between the ICO/launchpad price and the current market price. It reflects the profits made by ICO or seed investors, not the gains of regular traders buying after trading begins. Itโ€™s important to note that no one is buying at $1 or $25.70 once trading starts. The real trading begins at the opening price, and everyone buys or sells based on that value.

Donโ€™t let these inflated percentages mislead you. Theyโ€™re a reflection of pre-market investments, not real-time trading profits. Stay informed, understand the mechanics of coin launches, and approach the market with knowledge, not assumptions.

Stay educated, trade smart.

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