When a new coin is launched, we may see amazing numbers like a 2400% increase, as happened with $VANA . But there is a common misconception that many people believe that some bought the coin at $1 and others at $25.70. Let's find out the truth! 🔍
How do new launches work? 🚀
When Binance adds a new coin, they have to set **three prices** before trading can start:
1. **Opening price* 💰
2. *Highest price of the day* 📈
3. *Lowest price of the day* 📉
For example,#VANAhad a low of $1 and a high of $25.70 in the first candle, while the opening price was around $21.79. 💵
What do these prices mean? 🤔
- **Minimum price** usually depends on the ICO price or launchpad price.
- **Highest price** can be random or based on data from CoinMarketCap if the coin is trading on other exchanges.
Sometimes, the numbers are arbitrary and depend on the market value at the time of launch. ⚖️.
The important fact 🛑
As I mentioned, Binance has to set these three prices before trading starts, so there is no way to buy the coin at $1 or $25.70 when trading starts. Everyone buys at the price at which trading starts.
Conclusion 💭
Don't be dazzled by these numbers! It's important to understand how things really work. Stay informed and be aware! 🌟
