Liquidity Risk

While the project aims to provide liquidity through exchange listings, the secondary market for MEDRE tokens may be limited, potentially impacting investors’ ability to easily buy or sell their tokens.

Mitigation

To mitigate liquidity risk, MEDRE will:

Preventative Measures

• Exchange Listings: Secure listings on established cryptocurrency exchanges that are actively pursuing or have achieved or persiuing MiCA compliance, such as Binance, Bitstamp, or CoinEx. This strategy ensures investors have access to regulated and reputable trading venues.
• Controlled Token Release: Implement a controlled token release strategy with an annual cap to prevent market flooding and maintain a healthy balance between supply and demand.
• DEX Liquidity: Outside the exchange listings, MEDRE will provide a healthy liquidity pool for decentralized exchange (DEX) listings, ensuring sufficient liquidity for token holders who prefer to trade on decentralized platforms. We will monitor the need of liquidity on these DEXes if listed and utilize the reserve fund if needed.

Detective Measures

• Market Monitoring: Continuously monitor the secondary market for MEDRE tokens, tracking trading volume, liquidity, and price volatility. This will help identify any potential liquidity issues and enable MEDRE to take corrective action if needed.

Corrective Measures

• Market Makers: Engage professional market makers to provide liquidity and ensure smooth trading of MEDRE tokens on exchanges.
• Community Incentives: Explore community incentives to encourage token holders to participate in liquidity provision and decentralized exchange activities.
• Dedicated Secondary Market: Consider establishing a dedicated secondary market for MEDRE tokens to further enhance liquidity and provide an alternative trading venue.