Haseeb: The general underperformance of low-circulation/high-FDV tokens is a process of market self-correction

According to news on May 20, Haseeb, managing partner of Dragonfly, published an article on the social platform "Why are all these low float / high FDV coins down bad?", which is about the general poor performance of low float / high FDV tokens recently listed on Binance. It has triggered discussions on whether the market structure is damaged, whether venture capital is too greedy, and whether retail investors are being targeted. Haseeb believes that the current market decline is mainly due to the market’s reduced risk appetite for new tokens, rather than the above reasons. Theories such as venture capital, retail investors turning to MEME trading, and lack of liquidity do not hold up in terms of data. Haseeb advises market participants to better calibrate expectations and strategies, arguing that free markets will mediate price errors on their own. Haseeb believes that the decline in overall market sentiment caused by geopolitical tensions in the Middle East in mid-April 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 have been sold off.