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WHAT IS LIQUIDITY IN NFT

The term liquidity refers to the ability to buy and sell a token.

In other words, for a token to be bought and sold at any time, it needs to be liquid. 

This only occurs in two cases, if we have a liquid market (there is enough activity so that demand and supply are similar) or if someone has previously created a liquidity pool of that token (a set of funds that allow the exchange).