How Does the Issuance of a Cease and Desist Order Affect the Secondary Market Trading of the Token?

A cease and desist order, especially one from a major regulator, typically causes an immediate and massive drop in the token's secondary market price. Exchanges may delist the token to avoid regulatory scrutiny, severely limiting liquidity.

The order creates immense uncertainty and risk, as the token's legal status is in question. Trading volume often dries up, and the token may become virtually worthless.