Liquidity Trap: Seemingly Unaffected, But Actually Trapped Yesterday during the big drop, someone told me, "This certain meme coin is amazing! The market's plummeting, but it barely moved!" I told them, "Brother, you're overthinking it." It's not that it's strong; it's that nobody can sell. The liquidity is ridiculously low. If you place an order for a few thousand USDT, slippage will wipe out 30% of your investment. The scariest thing about these coins is that you appear to be making a profit on paper, but you can't actually sell. When you finally want to sell, you'll find, "Where are the buyers?" So next time you see a coin "resistant to drops," check its liquidity first. Don't mistake being trapped for resilience.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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