There is a big misconception among people and I will clear your doubts today.
When a new coin is launched and it shows a percentage based on the lowest price of that candle and the price where the market is currently like $VANA is up 2400% now.
The misconception is that people think that some people bought it at $1 and some at $25.7
When Binance adds a new coin, it has to mention three prices before starting trading.
Opening price
High price of the day
Low price of the day
For example, the lowest price of#VANAis $1 and the highest price of the first candle was $25.70 and the opening price was around $21.79
The low is mostly based on the ICO price of that coin or the launchpad price and the highs are either random or CMC based if it is already trading on other exchanges. Sometimes both can be just random numbers depending on the market cap at the time of launch.
So the percentage you see on the screen is the difference between the ico/launchpad price and the current market price. It's the percentage that ico or seed investors made. As I said, they have to add 3 prices before launch, there's no way someone can buy at $1 or $25.70 when trading starts. Everyone buys at the value at which trading starts. Don't be dazzled or surprised by these numbers, learn how these things work.It's important.
