kaal:claim:4033886-027

Digital assets become less liquid precisely when large amounts are moved at once, because a large sell order floods the exchange and drives the price down.

Source quote, verbatim
Digital assets are less liquid when individuals try to move large amounts at once. If an individual wants to sell a large number of tokens through an exchange, they have to ensure they do not flood the market with token, causing price to drop on the exchange.
From

Wulf A. Kaal, Samuel Evans, Hayley Howe, Digital Asset Valuation (2022), IV.1 Market Pricing, p. 29
https://ssrn.com/abstract=4033886 · source PDF

Cite as

Wulf A. Kaal, Samuel Evans, Hayley Howe, Digital Asset Valuation (2022). SSRN: https://ssrn.com/abstract=4033886

Holds when
Classification

failuresupport: arguedfailure: size dependent illiquidityfamily: liquidity-and-market-structure-failuredefieconomics

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