According to the source, the NYC token linked to Eric Adams experienced a sharp price crash amid allegations of liquidity extraction, signaling acute liquidity stress and elevated execution risk for traders (source: X post published Jan 13, 2026). In such events, thinning DEX liquidity typically leads to wider spreads, higher slippage, and greater likelihood of failed or partial fills, making smaller position sizing, limit orders, and monitoring pool depth prudent before entries (source: X post context on alleged liquidity extraction published Jan 13, 2026).

According to Crypto Rover, the daily number of new tokens launching on PumpFun is significantly declining, which reflects a growing fatigue among investors regarding liquidity extraction. This trend suggests a potential shift towards a focus on utility in the altcoin market, signaling a possible change in trading strategies for participants. Traders might consider redirecting attention to tokens with tangible utility as the market adapts to these changes.

According to AltcoinGordon, the sudden surge of Enron Coin to $500M led to a dip in SOL coins, attributed to potential liquidity extraction by insiders.