Exit Liquidity
The latecomers whose buying lets earlier holders sell at high prices — a role you never want to unknowingly play.
“Exit liquidity” describes buyers whose purchases provide the demand that lets insiders or early holders sell out profitably — often at a top. When a token is aggressively promoted after a large run-up, the new retail buyers drawn in are frequently the exit liquidity for those who accumulated cheaply.
The phrase is a blunt reminder of market structure: for every seller cashing out at the top, someone is buying, and coordinated hype exists partly to manufacture that someone. It’s the mechanism behind pump and dumps and heavily-marketed meme coins. The defensive instinct: when a purchase feels urgent and everyone suddenly agrees it’s going up, ask whether you’re the buyer or the exit.