Hello, crypto community!

The cryptocurrency ecosystem continues to evolve, but not everything is innovation and opportunities. Today we want to talk to you about a key topic for any investor: "exit liquidity," a strategy used by developers and insiders of crypto projects to benefit at the expense of new investors.

What is Exit Liquidity?

In simple terms, "exit liquidity" occurs when the creators or early investors of a token take advantage of public enthusiasm to sell their holdings at inflated prices before the project collapses. In this scheme, new buyers end up bearing the burden, while insiders walk away with profits.

How does it work?

1. They create hype and false expectations: Developers promote the project with big promises, announcements of partnerships, and even paid influencers to attract investors.

2. Artificial price increase: As more people buy, the price of the token rises, generating the illusion of a "successful project."

3. Massive selling by insiders: When the price is high, developers and early investors sell in large quantities, causing a drastic drop.

4. Project collapse: New investors are left holding devalued tokens with no liquidity to sell.

Take care!!