The Importance of Liquidity

There is simply nothing more important to markets than liquidity.

In the instance of the DAT footballer market, liquidity is locked within the Bonding Curve AMM and less only the commissions and the spread on each trade, providing near perfect liquidity for each footballer.

In the case of the $KIX market the level of liquidity is transparently available to see on the blockchain.

In the case of NFTs no such liquidity is provided. The rationale could be seen as that you have bought an 'expensive jpeg' and you are on your own. If the market suddenly changes because football is cancelled as a result of covid, or as a result of a change in the regulatory status of the game you are playing, then the price of your NFT may well drop to zero with no one prepared to buy it.

In our case we have Liquidity Pools for both $KIX and DAT so that whatever the circumstance there is liquidity locked to support the eco-system, within crypto this concept is known as Total Value Locked and is completely transparent both on our platform and on 3rd party independent block explorers.

Please be aware that locked liquidity does not mean that a trader cannot lose money. Inevitably the game involves some degree of market risk which means if a trader buys a footballer DAT at the top of the market and sells at the bottom they will incur a loss.