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How Does Double-Spending Affect Market Liquidity?

It destroys confidence, causing a rapid sell-off and a sudden, severe loss of market liquidity.
Greeks.Live03.11.25

How Does Double-Spending Affect Market Liquidity?

A successful double-spend attack would severely damage confidence in the cryptocurrency, leading to a massive sell-off and withdrawal of funds from exchanges. This sudden loss of trust would cause liquidity to dry up rapidly, making it difficult to buy or sell the asset.

Exchanges and other financial institutions would halt trading to mitigate their risk.

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