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2025-03-19 14:24:43

Dan on Nostr: Let's talk about "Exit Liquidity". Its a word every investor should know. In a world ...

Let's talk about "Exit Liquidity". Its a word every investor should know. In a world of founder, 1st, 2nd, and 3rd "rounds" of investments to start up business, or God forbid, some "crypto", early entrants are going to want out with their enormous profits. Think about it. If the company was indeed REALLY good, why would they sell ? They wouldn't. They'd keep the company private. A private company is much easier to run.
The above is why "exit liquidity" is so important, ESPECIALLY with cryptos. The most masterclass example of managing exit liquidity is Ripple labs. They held back 80% of their XRP tokens for themselves and have carefully managed their exit liquidity with sales perfectly timed with their various "paid for" press releases.
When an issuer of a security has a massive number of shares to sell, EXIT LIQUIDITY is managed by the best minds on Wall street.
Who IS the "exit LIQUIDITY"? The retail investor.
Thank God Bitcoin never had that type of problem associated with it. It never had a human managing it. With Bitcoin, it was ''proof of work" from the beginning. With Bitcoin the gains ultimately go to the world that won't be robbed by inflation anymore.
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npub162faajz3nzfj5wccgx6e9ez75zap37xc3qgl7sjf5zelvqyu9slseattkj