Post
Topic
Board Altcoin Discussion
Re: Too many listed coins on exchange without volume, any reasons?
by
saint_casanova
on 05/09/2020, 19:09:28 UTC
It obvious that higher trading volum = more liquidity. liquidity refers to the ability of a coin to be converted into cash or other coins easily. Liquidity is important for any tradeable assets including cryptocurrencies.
Unfortunately, I have obversed that most coins listed this days on certain exchanges are without volume, that is, illiquid.
It is very clear that this situation was not common found before 2019.
What could be the reasons for this abnormalities. Your thoughts.
A dead coin or soon to be dead usually have very low or even none exist trading volume. This is a common thing you would found before 2019 since there were a hard crash in 2018 and many crypto projects become dead after the hype is over. Today, I think it up to exchange to asset the liquidity of a crypto coin since as you know, fake trading volume is also a thing. High liquidity doesn't mean it have a real volume.