Some exchanges are listing spot $LIT without actually holding the underlying tokens.

Be aware of the risks with these synthetic spot listings:

Inventory risk: the exchange may sell more $LIT than it actually controls, whether by error or design.

Settlement risk: withdrawals or deposits can be halted or impossible if balances don’t reconcile.

Liquidity illusion: order books may look tradable, but real supply is constrained because no one can deposit tokens.

Price discovery in these environments is fragile.
They are closer to IOUs than true spot markets.