# kaal:claim:3411110-019

**Claim.** A blockchain based offering routed through a single broker produces a specific cluster of risks, including limited price discovery, no market making and therefore less liquidity, constrained short selling, impaired best execution, and no print to a tape or national exchange.

**Type.** failure  **Support.** argued

**Holds when.**

- offering structures with only one authorized broker-dealer
- single non-scalable ATS

**Source quote.**

> Several additional risks are associated with the limited trading and associated limited material liquidity that results from a blockchain-based offering involving only one broker.

**From.** Wulf A. Kaal, Samuel Evans, *Blockchain-Based Securities Offerings* (2019), IV.1 Limited Liquidity, page 19

**Cite as.** Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110

**Verify.** sha256 of source PDF `c7626eeb7642045b79f8745df1f7232a8fe8bc44a1f7e87b592850e35b392b50` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Evans%20-%202019%20-%20Blockchain-Based%20Securities%20Offerings.pdf

**Failure mode.** single broker liquidity trap  (family: liquidity-and-market-structure-failure)

**Topics.** defi, economics

**Keywords.** liquidity, price-discovery, best-execution, market-making, single-broker

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.