All terms
Being the buyer that lets an earlier holder sell.
Every sale needs a buyer. When a large early holder wants out of a thin market, they need enough incoming demand to absorb their supply without collapsing the price. That demand is exit liquidity, and if you bought during a coordinated marketing push, it may have been you.
This is not a conspiracy, it is arithmetic. In a token where a handful of wallets hold most of the supply, the only way those wallets realize value is by selling into new buyers. Marketing exists to produce those buyers.
The defense is public data. Holder concentration, pool depth and the trade history are all onchain, and they answer the question of who is selling into the excitement before you become part of it.
A token trending across social media all afternoon while three wallets that have held since launch steadily distribute into every green candle.
That being exit liquidity requires being late. It requires being the buyer while somebody who got in cheaper needs to sell, which can happen on day one. If a token was promoted to you, ask who needed you to see it.
Common questions
How do I know if I am exit liquidity?
Can this happen with large well known tokens?
Where this comes up on the site
The guides that actually use this word, rather than a list of everything we have written.
Where to go next
More culture terms
Want this explained out loud?
Some of these land faster in conversation than in writing. Sessions are one to one and you can ask anything, including the things that feel too obvious to ask.