Why can the newly launched coin be purchased at a low price of $1 with a single large bullish candle?

Whenever a new coin is launched, you will notice the percentage increase from the low of the first candle to the current price. For example, the AVNA coin has risen by 2450%, and many people believe that those who bought at $1 must have made a fortune; however, this is not the case.

The truth is that when Binance adds a new coin, they must provide three prices before trading begins:

1. Opening price

2. Highest price of the day

3. Lowest price of the day

The lowest price of VANA was $1, the highest price of the first candle was $24.78, and the opening price was about $21. The lowest price is usually based on the ICO or issuance platform price, while the highest price can be arbitrary 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 cap 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 returns that ICO or seed investors have received.

As I mentioned, Binance must set these three prices before trading begins, so no one actually buys at $1 or $24.78 when trading starts. In fact, most people buy at the price when trading begins.

Don't be misled by these numbers; to put it simply, when it was just listed at $1, you could not purchase it at that price, and by the time you actually see it, it has already increased by about 2450%.

In this volatile market, it is crucial to maintain sharp insight and calm judgment. Let's embrace this period full of opportunities and make the investment journey smoother.