[Blockchain Express] According to BlockBeats, Dragonfly managing partner Haseeb recently published an article on the social platform, discussing the reasons for the general poor performance of "low circulation/high FDV" tokens recently listed on Binance. He believes that this is not due to broken market structure, excessive greed of venture capital or retail investors being targeted, but the market's reduced risk appetite for new tokens. He also pointed out that theories such as venture capital, retail investors turning to MEME trading, and insufficient circulation do not hold true in the data.
Haseeb suggested that market participants better adjust their expectations and strategies, and he believes that the free market will adjust price errors on its own. He further explained that the geopolitical tensions in the Middle East in mid-April led to a decline in overall market sentiment, which was the main reason for the decline in token prices. The market's risk appetite for new tokens has decreased, and such tokens have been classified as "high-risk new tokens" and sold off.
What do you think of this view? Welcome to share your views in the comment area, let's explore the future direction of the blockchain industry together! 😊