@loganmiller
Dependency on one exchange poses significant risks, such as liquidity concentration, sudden delistings, or manipulation. To analyze this, check whether the token is available across multiple centralized and decentralized exchanges, along with the depth of liquidity on each. A project should encourage multi-platform listings and provide incentives for liquidity providers to diversify markets. If trading volume is overly concentrated in one exchange, it signals fragility. Moreover, reliance on a single exchange may raise regulatory risks if that platform faces compliance issues. Robust projects ensure accessibility across geographies, pairs, and liquidity venues. Evaluating historical trading patterns and order book resilience during high volatility also provides insights into dependence. A diversified exchange presence strengthens sustainability and user confidence.
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