The SQD token has recently seen a significant increase, but can it sustain this growth? Let’s analyze the data.
First, let's look at liquidity. Currently, there is only $590,000 in liquidity, yet the market cap has surged to $66 million. In other words, the truly active funds are only around $4 million, but they are supporting a market cap of $458 million. This discrepancy doesn’t add up and is unsustainable.
Next, consider the unlocking schedule. Tokens are being released daily, with 1.08 million SQD being dumped every day. Who will absorb this continuous selling pressure? This is a persistent sell-off.
Most importantly, point three: unlocking isn’t the end. There is also support for unlimited token issuance. Tokens with unlimited issuance are inherently risky. Historically, projects like this, once targeted by hackers or attacked, face devastating consequences. The risk is too high.
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SchroedingerGas
· 5h ago
Liquidity is so weak, can it still rise? A correction is inevitable.
Unlocking 1.08 million every day, who can withstand the pressure?
Unlimited issuance? Bro, you're just digging a hole.
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NullWhisperer
· 5h ago
ngl the liquidity-to-mcap ratio here is... theoretically exploitable, to say the least. 59w liquidity propping up 66m? that's not a market, that's a house of cards waiting for one decent withdrawal to collapse. and then infinite mint mechanics on top? historically speaking, that's asking for protocol-level catastrophe when the vultures notice.
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StakoorNeverSleeps
· 5h ago
Is it still brave to trade with such thin liquidity?
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1.08 million daily sell-offs, who can withstand this selling pressure in the long run?
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Unlimited issuance is indeed a trap; historically, few projects of this kind have had a good ending.
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Wait, with a market cap of 66 million and liquidity of only 590,000? That gap is too outrageous.
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It looks pretty fierce, but I’ll observe first before making any moves. Too many red flags.
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I’ve always said this coin is toxic. Ignoring advice and insisting on buying in, serves you right.
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The risk profile of SQD is indeed not great, I’ll pass.
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I absolutely won’t touch coins with unlimited issuance; I’ve learned too many lessons.
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This is just nonsense; the fundamentals look shaky at a glance.
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The ratio of liquidity to market cap is so bizarre, who dares to put real money in?
View OriginalReply0
RugResistant
· 5h ago
liquidity crunch is real here... 59m tvl vs 6.6b mcap? that's a classic pump waiting to deflate ngl. daily unlock dump of 1.08m tokens gonna keep pressure on, and then they slap infinite mint on top? analyzed thoroughly - this hits every red flag in the playbook fr fr
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GateUser-75ee51e7
· 6h ago
Liquidity is so thin, it will definitely crash sooner or later
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Unlimited issuance? Isn't this just a slow death spiral
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Daily selling pressure of 1.08 million, who can handle it haha
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Small-cap coins are most afraid of this kind of structural problem, it should have been seen clearly long ago
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Really dare to set unlimited issuance, the project team is planning to exploit the system for the long term
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Liquidity and market cap are seriously mismatched, this data looks outrageous
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Holding this kind of coin for a long time is exhausting, might as well go all-in on something else
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I would directly pass on coins with unlimited issuance, the risk premium is too high
View OriginalReply0
NewDAOdreamer
· 6h ago
With such thin liquidity, daring to hype it up will only lead to a dump sooner or later.
View OriginalReply0
GateUser-beba108d
· 6h ago
With such poor liquidity, a collapse is inevitable. Don't touch it.
The SQD token has recently seen a significant increase, but can it sustain this growth? Let’s analyze the data.
First, let's look at liquidity. Currently, there is only $590,000 in liquidity, yet the market cap has surged to $66 million. In other words, the truly active funds are only around $4 million, but they are supporting a market cap of $458 million. This discrepancy doesn’t add up and is unsustainable.
Next, consider the unlocking schedule. Tokens are being released daily, with 1.08 million SQD being dumped every day. Who will absorb this continuous selling pressure? This is a persistent sell-off.
Most importantly, point three: unlocking isn’t the end. There is also support for unlimited token issuance. Tokens with unlimited issuance are inherently risky. Historically, projects like this, once targeted by hackers or attacked, face devastating consequences. The risk is too high.