What does it mean to be exit liquidity?
Short answer
Being "exit liquidity" means you are the late buyer whose purchase provides the demand that lets earlier holders — insiders, snipers, shills — sell at a profit. In other words, the smart money sells to you near the top.
Almost every losing memecoin trade reduces to this: buying a pump late so someone else can cash out. The defense is to ask, before every buy, "who is selling to me, and why?"
Related questions
How do I avoid being exit liquidity?
Do not chase parabolic candles. Enter early on broadening unique buyers, and be skeptical of any coin being aggressively shilled to you.
Why do shills want me to buy?
Because they (or whoever pays them) hold a bag and need new buyers to sell into. Unsolicited "alpha" usually exists to create exit liquidity.
Is buying any pump being exit liquidity?
Not necessarily — buying early in a pump on real demand can make others your exit liquidity. The danger is buying late, after the move is extended.
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Education only — not financial advice. Memecoins are extremely high risk.
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