Hi everyone,
1/ Who determines the price of a token at launch?
For example, the SUI token cost a few cents in pre-sale and was listed at almost $1.50 on the Binance listing
Well, when tokens are first released, some projects decide to do a pre-sale in different forms, such as an ICO (initial coin offering), an IEO (initial exchange offering), or an IDO (initial dex offering), and the core project team is always responsible for the price they decide to sell at during their presales. Also, the project owners could decide to list their token at $1, but after listing at the mentioned price and the token seems to have a lot of exposure, or should I say a lot of waiting investors waiting to pump in money and buy the token, the price could move from the $1 listing price to $2.5 or more (immediately after it gets listed or after some times). But if the token has no much exposure, and perhaps there are a lot of early investors already who have bought from the ICO or even some people who earn the token for free, they may be waiting for the day the token will get listed so that they can sell, so perhaps if the token also gets listed at $1 each, and let's say there are a lot of people ready to sell compared to just a few numbers willing to buy, the price of the token will crash from $1 to $0.Whatever.
So if a token was sold for a few cents during the pre-sale, then after it got listed on Binance or some tire one exchange, the price spiked, definitely because there were more people buying the token and also because there was enough liquidity for as many investors who were selling the token.
2/ In your experience, is it a good idea to buy a chip the second it is listed for a profit?
Thanks for clarifying.
This is a decision you need to make for yourself. I have tried it before, but I was unlucky because it did not favor me. I spent $300 to buy a token immediately after it got listed, and for some time the price was fluctuating until it kept going down. I was so impatient because I was really losing money on that investment, so I sold at a loss. I lost about $100. (Although I made a profit of about $50 but I guess I was expecting more, so I still wait until I lost it and also lost about $100+ of my capital).