#Liquidity101

**Exit Liquidity in Crypto: How Whales Cash Out Using You**

Crypto rallies often hide a brutal truth: you’re the exit liquidity for whales. When a token pumps, early holders (whales, insiders, influencers) dump their bags at peak prices, leaving retail investors with worthless assets.

### **How It Works**

1. **Controlled Supply**: Whales hold 70–90% of tokens.

2. **Hype Phase**: Influencers and bots fuel FOMO.

3. **Dump Phase**: Whales sell, price crashes.

### **2024–2025 Examples**

- **$TRUMP**: Peaked at $75, crashed to $16.

- **$PNUT**: Lost 60% after whales exited.

- **$BOME**: Dropped 70% post-launch.

### **How to Protect Yourself**

✅ **Check token distribution** (top wallets holding >50% = 🚩).

✅ **Track vesting schedules** (VC unlocks = incoming dump).

✅ **Avoid hype-driven tokens** with no utility. $XRP

Stay vigilant—don’t be the exit liquidity. 🚀💀