Why do low-priced cryptocurrencies tend to experience extreme surges, given that Bin's launch on Alpha has increased by over 2,750,000%?

According to the latest news, since Bin was launched on Binance Alpha, this token has surged by 2,751,551.80%, with a current price of 0.00094 USDT. This figure looks astonishing, but it reflects a common phenomenon among low-priced tokens. Meanwhile, the recently launched BREV project on the Binance Alpha platform has also attracted market attention, as new projects often become market hotspots upon debut.

The Mathematical Logic Behind Extreme Price Increases

Why is the percentage so large?

Seeing a number like 2,750,000%, many people’s first reaction is “explosive growth.” But there’s an important mathematical logic behind this: when the base price is extremely low, even a modest absolute increase can result in a very exaggerated percentage.

According to the latest news, Bin’s current price is 0.00094 USDT. If the initial price of this token was a fraction of a dollar, then the percentage increase calculation can produce an extreme figure. For example, going from 0.00000034 to 0.00094, the absolute increase is less than a thousandth of a dollar, but the percentage increase can reach over 200 times or more.

This means:

  • The absolute price increase may be very small
  • The percentage increase can be magnified multiple times
  • The actual profit potential is often much smaller than what the percentage suggests

The appeal of newly launched projects on the Alpha platform

Binance Alpha is a platform used by Binance to incubate new projects. According to relevant information, BREV gained significant attention when it launched on Alpha on January 6. New projects launched on such platforms often attract:

  • Traders seeking new opportunities
  • Participation from Alpha token holders
  • Market interest in the initial pricing of new tokens

In the early stages of a new token’s launch, liquidity is usually low, and trading volume is relatively small, which can also lead to sharp price fluctuations.

Practical Issues to Watch

Liquidity and actual trading

Extreme percentage increases are often accompanied by relatively low trading volume. This means:

  • The actual amount that can be traded may be limited
  • Large buy or sell orders may face significant slippage
  • Market depth may be insufficient

Based on on-chain data from relevant sources, we see that recent large ETH movements on Binance have been quite active, indicating that market participants are paying attention to actual liquidity conditions. This is very important when evaluating any asset.

Project fundamentals

The brief information about Bin is limited, only providing price and percentage increase data. In such cases, investors need to do their own research on:

  • The actual functionality and use cases of the project
  • The team background and technical strength
  • The tokenomics design

In comparison, BREV, as a project launched on Binance Alpha, at least has Binance’s preliminary review and endorsement.

Summary

Bin’s extreme price increase is a combination of low-priced tokens and new platform effects. The figure of 2,750,000% may grab attention, but what truly matters are: the actual significance of the absolute price increase, the sufficiency of market liquidity, and the project’s fundamentals. New projects on the Alpha platform often attract market attention, but whether this attention translates into long-term value depends on the project’s actual development. For any token with an extreme increase, it is essential to make judgments based on a thorough understanding of its fundamentals.

BREV-3,89%
ETH0,19%
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