[piva00]

Illiquid just means that you can't cash it in quickly.

Cash is 100% liquid while a house is illiquid you might have millions US$ parked there but only if you manage to sell it, then you convert it into liquid cash.

Liquidity is a measure of how easy it'd be to trade a thing for another thing you want.

[oldgradstudent]

> Liquidity is a measure of how easy it'd be to trade a thing for another thing you want.

It is also very hard to trade worthless things for expensive things you want.

Insolvent institutions like to claim they are illiquid when in reality they are insolvent.

We've seen this happen over and over during the 2008 crisis.

[lottin]

Agreed, but in this case these tokens have suddenly become 'illiquid' because they have just become worthless. It seems that here the term 'illiquid' is being used as a euphemism.