According to Flood, the essence of trading, especially in memecoins, revolves around capital extraction, where participants aim to outmaneuver others to gain profits. The recent reactions to losses in Libra trades highlight the inherent competition in trading, where being out-traded is part of the risk, not an anomaly. This perspective emphasizes understanding market dynamics and strategic agility as crucial for traders. [Source: Flood on Twitter]

According to Pentoshi, large capital extractions ranging from $200 million to $1 billion during single launches result in a permanent reduction of available cash in the altcoin market. This leads to an increase in supply while reducing available liquidity, which can negatively impact trading conditions and market stability.