Unbacked minted tokens flooding secondary markets create immediate downward price pressure through exchange deposits.

Unbacked minted tokens are flooding secondary markets and creating immediate downward price pressure through exchange deposits, representing a direct supply-side headwind for affected assets. Investors face dual risks from both the secondary market price depression caused by these tokens and the underlying structural issues they represent.

Excess token supply reaching exchanges creates mechanical selling pressure that can overwhelm demand-side flows regardless of fundamental developments, and this pressure persists as long as the supply continues to be deposited. Supply-side dynamics matter structurally because they affect the elasticity of price movements and can create extended periods of underperformance even when sentiment is improving, as new supply continuously absorbs buying interest.