Small Crypto Tokens Face Liquidity Crisis After October 11 Liquidations

Major exchanges saw emptied order books and retreating market-making funds following record-breaking market-wide liquidations.

Summary

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Terms & Concepts
  • Liquidity Crisis: A market situation where there is insufficient buying and selling activity, making it difficult to execute trades without large price changes.
  • Market-Making Funds: Investment entities that provide liquidity by continuously quoting buy and sell prices for assets, helping maintain orderly markets.
  • Order Book: A list of buy and sell orders for a specific asset, organized by price level on a trading platform.