Coinwho cares
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Can any expert who knows it better can explain us that the initial price is showing 1.000 but when it launched it started from top to bottom what’s the logic behind it? Every coin does same
. Let me break down the logic behind this:
1. Pre-set Initial Price (Nominal Value)
Before a coin/token goes live for trading, the project or exchange may display an "initial price" (e.g., 1.000 USD or its equivalent).
This price is usually arbitrary or determined as a reference value for the token’s sale or launch phase.
For example, during ICOs or presales, tokens may be offered at this fixed price.
2. Supply and Demand at Launch
When the coin launches and trading begins, actual buyers and sellers enter the market.
The price quickly reflects real supply and demand dynamics, not the pre-set initial price.
If many people want to buy the token at launch (high demand, low supply), the price can spike up.
Conversely, if there's little demand or too much selling pressure, the price can drop quickly.
3. Price Discovery Mechanism
The initial moments of trading serve as a price discovery phase.
This is when the market decides what the real value of the coin is based on current interest, utility, hype, and market conditions.
4. Market Manipulation & Hype
Some coins experience artificial pumps due to marketing hype or manipulative behavior (e.g., bots, early investors cashing out).
Prices can surge at launch but then crash as early investors or pre-sale buyers sell for profits ("dumping").
5. Not Every Coin Does the Same
While many new tokens behave this way, not all coins follow the same trajectory.
Established projects with solid fundamentals may see more stable price action.
Coins with lower hype or liquidity may start slow and grow gradually over time.
Summary
The "initial price" is often not a market-driven value but a nominal starting point. The actual price at launch is determined by supply and demand. Rapid price changes happen because of speculation, trading volumes.
. Let me break down the logic behind this:
1. Pre-set Initial Price (Nominal Value)
Before a coin/token goes live for trading, the project or exchange may display an "initial price" (e.g., 1.000 USD or its equivalent).
This price is usually arbitrary or determined as a reference value for the token’s sale or launch phase.
For example, during ICOs or presales, tokens may be offered at this fixed price.
2. Supply and Demand at Launch
When the coin launches and trading begins, actual buyers and sellers enter the market.
The price quickly reflects real supply and demand dynamics, not the pre-set initial price.
If many people want to buy the token at launch (high demand, low supply), the price can spike up.
Conversely, if there's little demand or too much selling pressure, the price can drop quickly.
3. Price Discovery Mechanism
The initial moments of trading serve as a price discovery phase.
This is when the market decides what the real value of the coin is based on current interest, utility, hype, and market conditions.
4. Market Manipulation & Hype
Some coins experience artificial pumps due to marketing hype or manipulative behavior (e.g., bots, early investors cashing out).
Prices can surge at launch but then crash as early investors or pre-sale buyers sell for profits ("dumping").
5. Not Every Coin Does the Same
While many new tokens behave this way, not all coins follow the same trajectory.
Established projects with solid fundamentals may see more stable price action.
Coins with lower hype or liquidity may start slow and grow gradually over time.
Summary
The "initial price" is often not a market-driven value but a nominal starting point. The actual price at launch is determined by supply and demand. Rapid price changes happen because of speculation, trading volumes.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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