Exit Liquidity
The buying demand that allows early holders of a token to sell at a profit. In a scam context, "providing exit liquidity" describes the situation where retail buyers unknowingly buy tokens that insiders are dumping.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
Related Terms
AMM
Automated Market Maker. A decentralized exchange protocol that uses mathematical formulas to price assets, allowing users to trade without traditional order books.
MetaMask
A widely used non-custodial wallet for Ethereum and other EVM-compatible blockchains, available as a browser extension and mobile app. MetaMask lets users hold their own keys, interact with dApps, and swap tokens.
KYC
Know Your Customer. Identity verification procedures required by exchanges and financial platforms to comply with anti-money laundering regulations.
Pre-sale
A token sale offered to early investors (often VCs and insiders) before a public launch, usually at a discount. Pre-sales can fund development but create early selling pressure when those discounted tokens unlock.
Layer 2
A secondary framework or protocol built on top of a Layer 1 blockchain to improve scalability and reduce transaction costs. Examples include Lightning Network and Optimism.