Propose an edit: Exit liquidity

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Title Category One sentence summary Infobox, one "key: value" per line Article body, markdown, use [[wiki links]] and end with a ## References section

Exit liquidity is the pool of buyers whose demand allows earlier holders to sell their positions. In neutral market terms every seller needs a buyer; the slang weaponizes this fact. To "be exit liquidity" is to have bought an asset near its top, so that insiders, early buyers, or promoters could exit into your order. The phrase is always retrospective and always an indictment: nobody intends to be exit liquidity.

## Usage

The term is the trenches' core cautionary concept. Late buyers of a hyped launch are exit liquidity for the [[dev]], the [[bundle]] wallets, and the [[sniper]] bots that loaded earlier and cheaper on the [[bonding curve]]. Followers of a [[kol]] call are exit liquidity for the caller who bought before posting. Members of an [[alpha group]] can be exit liquidity for the group's owner, and copiers of a famous wallet can be exit liquidity for the wallet they copy (see [[copy trading]]). The accusation "you are the exit liquidity" is crypto Twitter's standard warning against buying attention driven tops, and in the [[pvp]] framing of meme coin markets, identifying who the exit liquidity is (and making sure it is not you) is the whole game. A trader who fails becomes a [[bag]] holder.

## History

The phrase comes from conventional trading, where liquidity for exiting a large position is a genuine execution concern, and it was in wide crypto use by the 2021 cycle for retail buyers absorbing venture and insider unlocks. Glossaries by BitMEX, Crypto.com, and Coin Bureau document the crypto specific sense. The pump.fun era gave the term its sharpest form, since launchpad tokenomics make the sequence of who exits into whom visible onchain.

## References

- https://www.bitmex.com/blog/what-is-exit-liquidity
- https://crypto.com/en/glossary/exit-liquidity
- https://coinbureau.com/education/what-is-exit-liquidity
- https://coinpaper.com/1987/what-is-exit-liquidity-in-crypto-and-how-to-avoid-becoming-one

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