As a researcher with extensive experience in the crypto market, I find Haseeb Qureshi’s perspective on the recent price declines of tokens listed on Binance intriguing. While there have been theories suggesting market manipulation by venture capitalists and key opinion leaders dumping tokens on retail investors, Qureshi presents a more nuanced view.
Haseeb Qureshi from Dragonfly Capital expressed apprehensions regarding the explanations given for recent ICOs listed on Binance, implying that there might be intricate reasons for the price swings in the market.
Haseeb Qureshi, managing partner at Dragonfly Capital, proposes an alternative explanation for the price decrease of Binance-listed tokens over the past six months. It might not be due to venture capitalists selling off their holdings, but instead, a more intricate interplay of market forces is likely at play.
In a recent article published on May 19th, I, as an analyst, raised flags about the data shared by @tradetheflow_ in an X publication. The data in question revealed that certain Binance listings, which they labeled “high FDV, low float,” had experienced substantial price drops despite initial enthusiasm.
An analysis of the latest listings on the prominent cryptocurrency exchange, Binance, over the past six months reveals that over 80% of these tokens have experienced price declines since their listing dates. Notable exceptions to this trend are:
— flow (@tradetheflow_) May 17, 2024
Tokens with significant fully diluted market values yet small circulating supplies at the time of their listing have raised suspicions about potential market manipulation.
As a researcher studying the crypto market, I’ve identified several pressing issues that have been raised within the community. These include concerns about venture capitalists (VCs) and Key Opinion Leaders (KOLs) selling large quantities of tokens to unsuspecting retail investors, a noticeable shift in retail interest towards memecoins, and challenges related to insufficient supply for meaningful price discovery.
As a crypto investor, I’ve come across the argument that some venture capitalists (VCs) do not have vesting periods for their token rewards. However, this is disputed by Qureshi who asserts, “every well-known VC that comes to mind has had a one-year waiting period and a multi-year vesting requirement before they can access their tokens.”
“The issue is that each token in this story is less than a year away from its Token Generation Event. Consequently, venture capitalists with one-year vesting periods would still be locked in.”
Haseeb Qureshi
As a researcher, I’d like to share an alternate perspective provided by Qureshi, who made it clear that his opinions do not align with those of Dragonfly Capital as the team holds diverse viewpoints. He pointed out that these digital tokens maintained their stability until mid-April, when a wider market decline took place. This downturn was partly fueled by escalating geopolitical tensions in the Middle East.
“Why haven’t these coins bounced back? In my view, they’ve been categorized as ‘risky new projects’ in investors’ minds. The desire for such risky investments decreased in April and hasn’t fully returned. The market seems disinterested in purchasing them at the moment.”
Haseeb Qureshi
As a crypto investor, I can tell you that I’ve come across speculations about retail traders selling their tokens to buy into memecoins. However, I believe these theories are baseless. The meme coin craze reached its peak in March, but the market correction, or “dump,” occurred in April, approximately a month and a half later.
As a crypto analyst at SwissBorg with the handle @tradetheflow_, I recently brought up an intriguing observation in a post on May 17. Approximately 80% of the tokens that have been listed on Binance within the past six months have experienced a loss in value since their listing. Interestingly enough, many of these underperforming tokens received backing from well-known venture capital firms such as Coinbase Ventures, Pantera Capital, Paradigm, and Dragonfly.
As a research analyst, I’ve discovered that only two memecoins and one token haven’t received backing from significant venture capital firms have demonstrated positive returns since their launch. This finding highlights the significance of enhancing transparency and strengthening the selection processes for token listings.
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2024-05-20 12:04