Yes. A lack of liquidity can result in runaway price depreciation of your token. For example, a lack of bid-side liquidity from patient buyers means that even small orders to sell your token will have significant market impact. Dramatic price shifts and large "red candles" on a trading chart may be perceived by existing token holders as deteriorating fundamentals, or a "flaw" in the underlying protocol. As a result, they may sell their tokens as well, thus catalyzing further price depreciation.