Crypto speak: Exit liquidity

This term was not originally a negative term, but now, in the crypto community, it means a rather unpleasant phenomenon.

Often succumbing to FOMO, investors start buying up (what seems to them to be promising) coins that are in the growth phase. This way, they pump money into the asset and increase its liquidity. This is how “sly” investors create exit liquidity: by selling their coins at a high price and collapsing the price at the same time.

And thanks to exit liquidity, whales watch from the sidelines while snacking on popcorn 🍿as everyone else takes huge losses.

#ETH #Liquidity #BTC #Layer2