How Does a Large-Scale Token Purchase Affect the Liquidity of a PoS Token?

A large-scale token purchase significantly reduces the liquidity of a Proof-of-Stake (PoS) token, especially if the purchase is made quickly on the open market. The high demand from the attacker will rapidly deplete the available supply on exchanges, causing the price to spike and the bid-ask spread to widen.

This low liquidity makes it harder for other market participants to trade at a fair price. The attacker, however, faces a massive cost, known as slippage, due to their own purchase.