Traders who buy near the top, enabling earlier holders to sell; colloquially, the late buyers who become the sellers’ liquidity.
Exit liquidity describes market participants who provide bids for others to sell into, often after aggressive marketing or hype. It cautions against buying solely on social momentum.
Influencers shill a token; price spikes as followers buy. Early holders sell into the rally—those followers become the exit liquidity when price later dumps.
Avoid being exit liquidity by validating fundamentals, checking token distribution and liquidity locks, and watching for coordinated shilling or thin order books.
Before buying, verify top holders, contract mint permissions, and real liquidity depth instead of trusting screenshots.
All terms and definitions may update as the Cryptionary improves.