Haseeb Qureshi: Continuously Unlocking Tokens Is Undermining Confidence in the Token Market
Haseeb Qureshi, managing partner at Dragonfly Capital, said in an Aug. 28 interview with Bankless that the ongoing unlocking is affecting secondary-market confidence for some tokens. He noted that persistent sell pressure that many projects have faced long-term is related to unlocking schedules that have continued for many years. He said that some strategic investors “sell immediately as soon as the tokens arrive—sell a batch when they receive one,” continuing until the 4-year unlocking period ends. Repeated long-term selloffs make secondary-market investors unwilling to take the other side, and also lead the market to form the expectation that “this token will only keep going down.”
Source: Bankless
Haseeb Qureshi, managing partner at Dragonfly Capital, said in an Aug. 28 interview with Bankless that the ongoing unlocking is affecting secondary-market confidence for some tokens. He noted that persistent sell pressure that many projects have faced long-term is related to unlocking schedules that have continued for many years. He said that some strategic investors “sell immediately as soon as the tokens arrive—sell a batch when they receive one,” continuing until the 4-year unlocking period ends. Repeated long-term selloffs make secondary-market investors unwilling to take the other side, and also lead the market to form the expectation that “this token will only keep going down.”
Source: Bankless