Managing Partner at the venture fund Dragonfly, Haseeb Qureshi, commented on a discussion that unfolded under YQ's post on X. The post's author described the situation as a period where startups, funds, and traders are operating amid falling liquidity, frequently changing themes, and declining investor interest in new assets.
He noted that many experienced participants have left the industry, disillusioned about whether Web3 creates real value.
Haseeb, however, stated that the current market condition is not comparable to the 2022 crisis. According to him, the industry then endured the sequential collapses of Luna, 3AC, FTX, Genesis, BlockFi, Axie Infinity, and the NFT sector, followed by bank failures, stablecoin problems, and aggressive regulatory pressure.
He emphasized that in 2022, the very survival of many companies was in question, whereas the current price decline does not pose such a systemic risk.
Fundamentals Are Strong, No Systemic Failures
Despite the drop in liquidity on both centralized and decentralized exchanges, Qureshi insists that the industry's fundamental indicators are “fine.” He stressed that the market is operating without systemic failures.
“Prices have gone down, yeah whatever. Fundamentals are great. Crypto is working. So relax, get something to eat. Lock in. We'll be fine,” Qureshi advises.
Record Liquidations? Not Exactly
Commenting on the record liquidations of $19 B on October 10, Haseeb explained their high nominal size by the higher prices of assets and the fact that a larger share of liquidations is being recorded now. According to him, when assessing this metric as a share of open interest, the event is not one of the largest.
As Bitcoin continues to test levels below $100.000, the Dragonfly expert urges the crypto community to focus on strong fundamentals and view the current correction as a normal market phenomenon, rather than an existential crisis like the one in 2022.
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