Token price at launch reflects liquidity depth, not just fundamentals. Thin pools amplify volatility; concentrated insider selling overwhelms buy-side liquidity instantly.
Projects seed DEX pools with token and ETH or USDC pairs. Locked liquidity — LP tokens burned or timelocked — reduces rug risk. Unlocked LP lets deployers drain pools; verify lock status on chain.
LBPs, fair launch auctions, and CEX listings each price discovery differently. Professional market makers provide CEX depth for a fee or token allocation — transparency about those agreements varies widely.