# kaal:claim:4033886-027

**Claim.** 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.

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

**Holds when.**

- large block sales through a single exchange

**Source quote.**

> 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, page 29

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

**Verify.** sha256 of source PDF `52ba05b1292b1be4bfaf1ee5cf56b14fea9c196d870603e794d7ee316df129bd` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20et%20al.%20-%202022%20-%20Digital%20Asset%20Valuation.pdf

**Failure mode.** size dependent illiquidity  (family: liquidity-and-market-structure-failure)

**Topics.** defi, economics

**Keywords.** liquidity, market-impact, block-trades, digital-assets

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