I’m new to this so might be a silly question but why are some coins expensive from launch? Like from $1 an counting where as others launch at 0.000+. And some coins backed by so called “low rent rip off” companies (pancakeswap) have currencies that reflect the former coin and “respectable” companies (Cripto.com) have coins that reflect the latter.
Hope that makes sense apologies if it doesn’t
Simply answer! Demand, scarcity and great promises. This is the mix that causes many people to pay horrendous prices for new projects.
Demand:
Especially in times like these, many new investors come into the crypto space. Many are looking for the next Bitcoin where they can multiply their stake 100x or 1000x. Therefore, everything is bought that seems somehow exciting and "cheap".
Scarcity:
The quantity is often very scarce in new projects, which artificially increases the market capitalization and the coin price. For example, if there are max 100 million coins, then only 20 million are sold in the crowdsale, the rest then flows into any development, marketing funds, etc.
Promise:
It initially promised so much. With possible market shares in 10 years advertised etc.pp. which blinds many, although these are often simply fantasy figures or refers to unprofessional studies.
Yes you're right. this is the reason why people are willing to spend money on things that are risky. and another hype, they believe investing in a popular project will pay them big returns.