How to Stop Being Exit Liquidity.
Let’s be real for a minute, while nfts have been bubbling lately, and mints moving fast, people are losing capital on plays that were dead before they even launched. And if you are blindly apeing into every shiny contract or mint link, you’re exit liquidity.
To survive and have a chance at a cook in this market, HG uses a strict 3-Step Degen Filter. If a play doesn't pass at least one of these criteria with flying colors, we don't engage.
1. Friction Tek.
Every meta has a shelf life. and so you need to ask, research or find out: Is there actual new tech, a fresh Ponzi, or is it a derivative?
First Movers cook massively. They bring a brand-new concept to the space creating huge upside and the further a project is from the first mover (the 3rd, 4th, or 5th iteration), the harder the upside caps. The market gets tired, wallets move on, and you’re left fighting other botters.
Essentially, If it’s not innovative, lower your expectations instantly.
2. The Founder/Owner (Are They Actually Working?).
Stop buying into "vibes" and start watching the dev/owner.
If the owner is actively shipping code, closing partnerships, hosting spaces, and managing the floor and its expectations enough, you can afford to hold for a real leg up.
Whereas if the team is lazy, slow to react, or just coasting, take your minor wins immediately, take the liquidity, and leave the bag for someone else.
A bird in hand is worth two in the bushes.
3. The Liquidity Vacuum / The "upcoming-project-mint-effect".
Liquidity in crypto is finite, volatile and highly mercenary. You can find a decent project, but if a massive, well marketted, well hyped project is being grinded in the same space, everyone is hoarding their cash for that mint.
If you buy into a minor degen play during a liquidity vacuum, you will get trapped with "paper gains."
There won’t be a strong enough buyer to sell to because everyone else is saving their funds for the hyped mint.
In summary,
Before you hit approve on that transaction, check the checklist.
❌ No innovation?
❌ Dev is semi-AFK?
❌ A massive mint is happening tomorrow?
DO NOT OPEN THE WALLET.
Let’s trade smarter, protect our capital, and focus on the plays that actually have the fuel to move.
What’s your personal golden rule for skipping a bad play? Drop it below.