Dragonfly Capital managing partner Haseeb Qureshi said ongoing token unlocks are hurting market confidence in some tokens, according to comments he made during an Aug. 28 interview with Bankless. He said many projects are dealing with persistent selling pressure tied to multi-year unlock schedules, with tokens released over time continuing to hit the market.
Qureshi said some strategic investors sell as soon as they receive tokens. Over a four-year vesting period, each tranche of unlocked tokens may be sold, he said. In his view, that repeated pattern makes it harder for secondary market investors to step in and can leave traders with the impression that certain token prices only move lower rather than higher.
Dragonfly Capital managing partner Haseeb Qureshi said ongoing token unlocks are damaging market confidence in some tokens, according to remarks he made in an Aug. 28 interview with Bankless.
Qureshi said many projects face persistent selling pressure from unlock schedules that stretch across several years. He added that some strategic investors sell "as soon as they receive tokens," and said that during a four-year vesting period, each unlocked tranche gets sold. That repeated selling, he said, keeps secondary market investors from entering and can create the impression that a token's price "only goes down, not up."
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