Post
Topic
Board Economics
Re: Two critical issues: liquidity and volatility
by
VUToken
on 07/04/2018, 09:33:59 UTC
«That’s what’s happening to today’s ICOs. They are raising an eye-watering amount of funds (over 1 billion in 2018 alone), but once the funds are in their wallet, it’s incredibly hard to use them in a practical way.

Here are the two critical issues: liquidity and volatility. The former breaks down like this, I raise $1 million in ETH but I can’t use it to pay my rent. The latter, I raise $1 million in ETH but its value could drop drastically in the same afternoon. Now I’m asking myself….»

Read full post: https://medium.com/@globcoin_io/what-can-icos-learn-from-the-electrification-of-cars-326ee5a63139

Liquidity is an easy issue to overcome. If one is patient, massive liquidations can be spread out over multiple exchanges, and over time. Volatility is the real issue. Until we get more adoption, it doesn't take a lot of selling to make a major effect on the price.