There’s a common misconception that when a new coin launches, some people are buying it at dramatically different prices, such as $1 or $25.70, based on the reported percentage increase. The truth is, when Binance or any exchange lists a new coin, they establish three key prices before trading starts: the opening price, the high of the day, and the low of the day. For example, let’s take #VANA: the low was set at $1, the high reached $25.70, and the opening price was around $21.79. The low is typically based on the coin’s ICO price or the price from its launchpad, and the high is either a random number or based on market data from other exchanges like CoinMarketCap (CMC) if the coin is already trading elsewhere. In some cases, these numbers can be arbitrary, depending on the coin’s market cap at the time of launch. The percentage increase you see on the screen reflects the difference between the ICO/launchpad price and the current market price. This percentage shows the return that early investors, such as those in the ICO or seed round, made, not the actual price fluctuations experienced by new traders. The key point is that no one bought the coin at $1 or $25.70 once trading began—everyone buys at the opening price. It's essential not to get overly impressed or amazed by these numbers and to understand how this process works.

#BTCNewATH #MarketNewHype