Lack of financial infrastructure is crypto's core liquidity problem, argues CEO

Even with clear regulations, the cryptocurrency market cannot solve its liquidity shortage without a supporting financial infrastructure to supply capital, argued Harpal Sandhu, CEO of Web3 accounting platform Integral. In an op-ed for Cointelegraph, Sandhu pointed out that during a large-scale forced liquidation event on Oct. 10 last year, liquidity rapidly evaporated, leaving sellers unable to find buyers. He explained that in a market lacking a sustainable and transparent credit mechanism, capital quickly exits during periods of high volatility, which further amplifies price declines. Sandhu asserted that this stems from a structural liquidity problem, not just a simple erosion of trust. To address this, he claimed that it is necessary to build a robust and broad crypto prime brokerage infrastructure capable of supplying credit.