# kaal:claim:4033886-035

**Claim.** Secondary trade pricing from exchanges is a legitimate market approach input for digital assets only when liquidity is high enough to rely on those prices; where liquidity is lacking or unreliable, a discount for lack of liquidity is required.

**Type.** condition  **Support.** argued

**Holds when.**

- market approach applied to tokens
- liquidity and depth differ between token to token and token to fiat trades

**Source quote.**

> Secondary trade pricing (as seen in exchanges) are relevant when liquidity is high enough to rely on these prices.131

**From.** Wulf A. Kaal, Samuel Evans, Hayley Howe, *Digital Asset Valuation* (2022), IV.2.a Market Approach, page 32

**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

**Topics.** defi, economics, tokenomics

**Keywords.** secondary-pricing, liquidity-threshold, market-approach, token-valuation

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