The recent hot topic is the delisting of PEPE leverage trading pairs by major exchanges. The comment section is buzzing—some are panicking and screaming about跑路, some are sharpening their knives, ready to buy the dip, and many simply don’t understand what’s happening to their positions right now. Looking at these reactions, I have to be honest: I’ve been watching the crypto market for nearly 8 years, seen many storms, and this wave is far more complicated than it seems.

What you fear most isn’t the token going to zero, but those invisible liquidity black holes.

**Why does the entire market tremble when an exchange removes a trading pair?**

Simply put, PEPE’s previous trading relied on the matching mechanism—thousands of buy and sell orders colliding inside the exchange to generate prices. Once the leverage trading pair is gone, leveraged traders holding positions are forced to liquidate en masse, but new funding isn’t enough to absorb the sell-off, causing terrifying gaps in price. Imagine: it’s still at 0.0000012 seconds ago, then in the next moment, it drops to 0.0000008. Your stop-loss orders can’t react in time, and you’re wiped out in an instant.

This is not scare tactics. In 2023, when a certain MEME coin was delisted, a real scenario of a 60% single-day plunge happened. The retail investors who got caught in that wave are still complaining in some forum threads.

**This PEPE situation, avoid three pitfalls.**

**Pitfall 1: Don’t be blinded by “cheapness.”** Falling prices make you want to buy the dip? That logic works for blue-chip coins, but tokens like PEPE have no real use case. Once the exchange delists, liquidity will dry up even faster. You might really be able to buy in, but trying to sell? Well, there are only so many buyers. The end result is watching your account hold a bunch of dead coins, hoping for a rebound every day.

**Pitfall 2: If you have leveraged positions, handle them immediately.** No matter how many times leverage you used, if it’s PEPE-related, now’s the time to consider reducing or closing your position. Before the exchange officially delists, forced liquidation will trigger, and the system will close your position at the worst available price. The losses can’t be negotiated. Better to cut losses proactively than to be caught off guard.

**Pitfall 3: Beware of chain reactions.** Actions by major exchanges often trigger subsequent reactions. Other platforms might follow suit and delist, or liquidity in trading pairs could sharply decline. Today you might sell close to market price, but tomorrow, you might have to accept a 50% discount to get rid of your holdings.

**So, what should PEPE holders do now?**

First, clarify your role. If you’re a pure spot holder with no leverage, it’s not a big deal for now—tokens are still in your wallet, nobody can move them. But liquidity drying up means your selling costs will rise. If you plan to hold long-term, ask yourself: can this thing still rebound this year?

If you have leveraged positions, don’t hesitate—immediately check your account and evaluate your stop-loss points. Even with just 3x leverage, this cleanup can be tough.

Another group most prone to mistakes are those with the mindset of “since I have to close anyway, I’ll wait for the bottom to buy.” Wrong. The market won’t give you time to slowly buy the dip. Liquidity drying up accelerates the process—prices can complete a full down cycle within minutes. By the time you react, it’s already starting to rebound.

**On a broader level, what does this event reflect?**

The lifecycle of MEME coins is essentially a cycle of exchange traffic. As long as they’re on top exchanges, there are buyers and outlets. Once exchanges step out, the system collapses. So don’t treat any MEME coin as a long-term asset; they are inherently short-term trading tools. Before entering, ask yourself: am I here for trading opportunities, or just to be the bagholder?

That’s all the advice I have. The crypto market never lacks opportunities, but opportunities often come with traps. This PEPE incident is both a risk warning and a tuition fee. Those who paid the tuition might avoid some pitfalls next time. For those still hesitating, act quickly—waiting sometimes is the worst choice.