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Uniswap Founder: Some Launchpads Create Artificial Price Rises by Thinning Liquidity, but Long-Term Liquidity Matters More

2026-08-07 00:35

Odaily Planet Daily News: Uniswap founder Hayden Adams responded on X platform to a user's question about why the FRONG token has a "market cap of $6.7 million but only $1.2 million in liquidity," stating that there are currently two kinds of "magic" in the market: one is LP fees automatically compounding liquidity, and the other is some Launchpads thinning liquidity depth in low-price ranges to make tokens rise more easily. Hayden Adams pointed out that doing so also reduces liquidity, making token prices more prone to rapid declines. Uniswap, on the other hand, chooses to optimize deeper, longer-term liquidity.