A crypto trader explains liquidity displacement: targeting coins with tiny liquidity pools ($50-100k) and injecting capital to move prices dramatically. He cites a Base layer coin with $58k liquidity where a $100k investment could yield 10x returns, and notes Coinbase's 120M users could drive massive adoption as access expands.
This could actually make me more money off of any trade than I ever made in my life. I've been in crypto for 8 years and I was accumulating Ethereum at $7, so that's pretty much a bold statement to say. But once you see how I break this down, you're going to understand it a little bit more. So I make the vast majority of my money off of a concept called liquidity displacement. I get into low liquidity coins and when they have buyers come in, it displaces liquidity, shooting up the price very fast, faster than when you would see pretty much anything on the face of the planet. What do I mean by that? I want you to think of the concept of 2x. A 2x is a 200% return. Right now the S&P 500 returns 10 This is 20 times faster than that, and all it takes is a $20,000 investment to move a liquidity pool with $100K liquidity up 2x. If I invest in coins with $100K liquidity, all I need is $100K to give myself a 10x, assuming there's no sell-side pressure. It's not perfect like this, but what I'm saying is low liquidity moves price up really, really fast. Look at the high liquidity here. If I have $100 million, for that same 10x, we need $108 million. So what I'm saying is if you can get into the quick projects, the early projects before anybody else, this is where it gets crazy. Now I'm gonna really bring it home for you. Have you ever seen this guy before? Maybe you have seen him before. He does these funny skits. He gets hundreds of millions of views. This guy right here. Here's his social media, 300K followers, and he gets like 10 million views there. Look at that. Look at how many crazy views this guy gets. Look at this. Look at how crazy this is, right? Now I'm gonna really blow your mind right now. He just launched a creator coin in the Base app, so he has all those views, all that demand, all those eyeballs. But look at his market cap. That doesn't— market cap's irrelevant. Let me show you deeper. Look at the liquidity. $58K liquidity. Hmm, let's do some math. This is a $100K liquidity pool. He has $58K, so you're— let's just say, let's just, let's— so you need $100,000 to get a 10x off his coin. If he just gets $100,000 of investment in his coin, you get a 10x. Which is really like fifty thousand because his liquidity pool is fifty. I told you I'm gonna get rich off of this. Let me tell you why. Because like I told you, I made a claim. It's like buying Ethereum at seven dollars. Well, do the math. Coinbase has one hundred and twenty million users on their Coinbase app. Base, which is a layer two created by Coinbase, has two hundred and twenty two million, and they have beta access to this stuff, right? There's you can buy the coin. But there's beta access to see all of these accounts as they're created. Guess what? They're created by Zora. And let's say hypothetically, this is not actual numbers, only 10%. So we only have 22 million people. As they start rolling out this beta access to the general public, there's going to be more people that see this coin and see every coin. And like I told you guys before, Zora launches the coins. It's the back end of the Base app. So Zora gets a piece of all of that. Zora, oh my gosh, I gotta make a full video on this because to pull this all together is kind of crazy. Leave a comment below if you guys have any questions. I'll try to answer it to the best of my ability.
