Recently, an interesting yet dangerous phenomenon — the $LIGHT token experienced a "roller coaster" performance within 4 hours.

The price plummeted from a high of $2.91549 straight down to $0.61569, with a naked 46.9% decline displayed on the screen. This is not unusual, but the details are the killer.

Look at this data contrast to understand. On-chain liquidity is only about $358,000 — a pitifully small number. Yet, the fully diluted valuation (FDV) is still listed at $258 million. When these two figures are placed side by side, it’s like sticking a band-aid on a dam with tape.

What does this extreme liquidity gap mean? Simply put, a small amount of capital entering can cause huge waves. Price movements are entirely not determined by market supply and demand, but by who holds more chips. The risk of such assets isn’t about whether the coin itself is good or not, but about the lack of sufficient depth to support trades.

Investors looking at assets with high valuation and low liquidity must prioritize "liquidity risk." Volatility is inevitable, and losses can happen instantly.