Exit Liquidity
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.
Related Terms
Pump and Dump
→A manipulative scheme to inflate the price of an asset and then sell it to unsuspecting investors.
FOMO (Fear Of Missing Out)
→Fear Of Missing Out (FOMO) is an emotional response in trading, driving individuals to invest due to the fear of missing out on potential profits.
All terms and definitions may update as the Cryptionary improves.
