Understanding Liquidity In Crypto

Please can you explain better? because I understand the fly over you are heading to

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Clap hand for what again :joy::joy:

As @manfred_jr rightly said, liquidity should be considered when investing in any asset.

It is this same liquidity issue that makes me hate nft buy it and all buyers are no where to be found.

You will hold it till the second coming of Christ.
I am waiting for an nft project that will provide liquidity for holders who are tired of holding and wants to sell and leave since the project is not offering anything substantial.

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Same with me Brother, and one will be force to sell nfts on marketplace for s reduce or below floor price…

Me and nfts don’t mix well

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U cant sell a single nft after buying unless you are very close to the creators of the project.

If u r not, then rest in peace to ur invested amount.

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Seems you had same experience,
Another case, only if the creators comes up with updates of importance or relief, then you took the speed to sell,

If not you will hold your nfts for future profile photos.

No liquidity

Talking about nfts, bayc down to 25 Eth and I’m still too poor to buy, Justin Bieber splashed $1m on one last bull run, ngmi!

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Maybe am still misunderstanding because I have come across a project that keeps burning burning burning almost 40-45% of the supply yet no positive price back, I have also learnt from one certain projects insider that most of the burnings we see is just marketing strategy,… correct me if am wrong we learnt that once a token is burned it will be moved to a wallet were no one has access to it and it’s totally gone out of circulation

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Lols.

You are correct, token burning = moving tokens to a wallet where no one has access to them, removing them from circulation
There is no guarantee that burning tokens will always lead to an increase in price.

Here is my reason. IF YOU LIKE BURN 10% OF YOUR TOTAL SUPPLY EVERY 24 HOURS, IF THERE’S NO DEMAND FOR THE REMAINING TOKEN.
THEN THE PRICE WILL EXPLAIN TIRE

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the burning may be seen as a marketing strategy. If the project team is burning tokens simply to generate hype, then the price may not actually increase.

Do you Recall UME TOKEN THST SCAMMED US that year,.
The kept burning their token,
BUT THEIR TOKEN WENT FROM $120 TO $0.000.

the logic here is to give INVESTORS the mindset that some amount of token will be taken out of circulation.

token burning is not a guaranteed way to increase the price of a crypto.
The market sentiment, overall demand, and other factors can all play a role in determining the impact of token burning on token price

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but who told you burning of tokens must lead to price increase :joy::joy:. It can due to low supply but remember you will only see this increase when demand is high. you can reduce it to 1000 and with no demand, price will keep decreasing

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Thank you my brother, with this few point of ours
I believe and hope that @Nweke-nature1.com will understand that not all token burning leads to massive pump

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@Gordian

In the case of the recent crypto market drop, there were a number of factors that contributed to the low liquidity which is

(1) Overall sell-off in risk assets, which led to investors withdrawing their money from the crypto market, and another factor was the regulatory uncertainty surrounding crypto, which made investors hesitant to enter the market.

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Very, very Correct point,. Additionally, The case of Crypto Fud, hacks or scams may result in huge removal of liquidity

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Few are transparent but I think majority is all about marketing strategy

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But there is always a higher demand when most projects make a burning announcement people will be curious to buy before the burn event, I remember the days of babydoge burning announcement, you know about Klever quarterly burning those days :joy: and swap burning mechanism
Did you remembered freecoin major announcement about burning 10% of the supply, well I can’t say much, also I may see this for some bad projects owner to dump on their investors

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Another incoming allegation :joy::joy::joy:
Abeg oooooo, I’m only learning about liquidity now oooo :rofl::rofl::joy:

There are a few NFTs on Tron you can now sell without being close to the creators. NFTs like TronNinjas and Tronbies do sell well among the community members. All you have to do is join their Tg channel and announce that you want to sell your NFT. In just a twinkle of an eyes, you will see buyers indicating interest.

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Haahahahahahahaha :joy::joy::joy:
This reminds me of my Tpunks. I used it as profile picture till it started irritating me. That was after I offer it for sell for over 12 months without any buyer :joy::joy::joy:

But guess what! @TronNinjas has started providing it with utility. So I’m not selling it again ooooo. Don’t come to my dm to request that I should sell it to you :rofl::rofl::rofl::rofl::rofl::joy:

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