Dragonfly Partner Haseeb: The Filtering in the Crypto Industry is a Healthy Cleansing
Dragonfly partner Haseeb stated that the current filtering in the crypto industry is a healthy phenomenon. The departure of many OGs is not a death signal for the industry, but rather a normal cleansing similar to the aftermath of the early tech bubble burst.
What remains are those who truly believe in long-term value; short-term pain leads to long-term benefits. In every bear market, pessimists are overly pessimistic. People should stay in the crypto space because the long-term value of the industry far exceeds short-term fluctuations. Haseeb is strongly bullish on ETH and SOL, believing both have tremendous futures.
In terms of market mechanisms, bear market funds flow out of speculative projects and shift towards core infrastructure and long-term holders. Event-driven cleansing accelerates capital concentration towards quality protocols, benefiting true builders in a low-valuation environment, while short-term traders and weak projects face pressure to exit.
Source: Public Information
ABAB AI Insight
Haseeb, as a partner at Dragonfly Capital, has consistently invested in early crypto projects over the years and has publicly emphasized the importance of infrastructure during multiple cycles. He has repeatedly pointed out during the 2022 bear market that a cleansing will lead to a stronger recovery, consistent with the historical path where survivors of bubbles lead the next growth phase.
In terms of capital flow, Dragonfly continues to deploy resources to support ETH and SOL ecosystem projects, motivated by capturing the network effects brought by technological continuity. This includes increasing positions in core assets during the bear market and maintaining long-term holdings, creating a stable capital flow from venture capital to underlying protocols.
Similar to strategies employed by institutions like Andreessen Horowitz that focused on investing in survivors after the internet bubble, the crypto industry is transitioning from bubble cleansing to infrastructure dominance, aligning closely with the expansion cycles of ETH and SOL as Layer 1 solutions.
Essentially, this represents capital concentration: cyclical filtering eliminates speculative capital, prompting resources to concentrate on protocols with network effects and long-term value. The mechanism lies in the undervaluation during bear markets creating buying windows, driving pricing power towards a few high-conviction participants and core technologies' permanent transfer.
ABAB News · Law of Cognition
Every round of bubble cleansing turns short-term gamblers into long-term believers.
Pessimism is always loudest at the bottom; long-term value is only reserved for those who stay.
The stronger the technological continuity, the more cyclical fluctuations are a necessary path to dominance.