How important is liquidity really? To put it simply, without it, everything is just虚的.

Imagine a scenario: you hold a certain amount of funds and want to enter the market to build a position in an asset. If the market is deep enough, this money can be absorbed smoothly, whales can freely move in and out, and the asset can even be used as collateral for borrowing. Why? Because everyone has confidence—the market liquidity is sufficient, and they can withdraw whenever they want.

But what about the opposite? Once the asset liquidity dries up, the entire situation reverses. Buy orders become scarce, trading depth becomes painfully shallow, users decrease, the market cools down, and a vicious cycle ensues.

Speaking of tokenization, this term was heavily hyped a few years ago. Everyone said it could unleash DeFi’s financial effects, connect on-chain and off-chain assets, and move trillions of traditional finance onto the chain. It sounded amazing—anyone could trade freely, stake, borrow, and even create financial products that traditional finance never imagined.

The ideal is beautiful, but reality is harsh. Most tokenized assets actually operate in a quite fragile environment. How insufficient is liquidity? Small transactions don’t reveal problems, but as funds scale up, hidden costs and risks instantly surface. As a prerequisite for financial utility—liquidity—has never truly been realized.

This is the harsh reality in front of us.