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/biz/ - Business & Finance


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22239833 No.22239833 [Reply] [Original]

>If you are a normal holder who doesn’t have insider information, you should fear liquidity.

>Imagine a project that knows they are about to make a very large partnership announcement. If there’s a large amount of liquidity, they can buy tokens before and dump them on the market afterwards. This hurts all of those new buyers who now had to buy in at a higher price.

>But more importantly for the current holders, imagine that a project got a letter from the SEC or found a bug in their code. Now they can dump their tokens on the market. The VC’s who they call for advice got informed before the community and dump even before the team. It’s a dangerous game and you are completely out of control.

>You should want very little liquidity.

>You should want it such that if someone wants to sell out, they either have to find their own buyer (who can then question why they want to sell), or it should take a long time and the price should adjust accordingly to the information this sell order might reveal.

>> No.22239872
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22239872

>>22239833
>If you are a normal holder who doesn’t have insider information, you should fear liquidity.

No, idiot, read the charts backwards and become Buffett

>> No.22239885

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