Bitcoin Forum

There's this new mechanism where tokens are being given a price floor and the net supply of a token are reduced and are bought back coins are burned.

Buybacks allow this dynamic coin offering to issue money-backed utility tokens. At least 80% of the money spent on token purchases during the DYCO will be set aside for buybacks, and this 80% creates a price floor.

https://i.imgur.com/3AK8r4V.png

Is this in a way safer and more appealing for the investors who has lost so much trust in crypto in the past few years?

This is good as it makes investors more confident in investing a certain project, but if it will increase the value of a certain cryptocurrency? it always depends on the overall performance of the project, in general rule, the value will only increase if there is a demand, therefore, a project has to be a potential project so people will see it as an opportunity and they will invest.

buy back is more like a security or insurance but it's not the main reason why a price will rise.

actually there are already many projects that do buybacks and burn tokens but the price increase only lasts a while after that it experiences a dump. Probably only 1 in 50 projects succeeded that way

that's the strategy they used, Buyback is a good step to start Pump,
and in fact altcoin will experience an increase if Team does that program

It suppose to increase or at least maintain the value of a cryptocurrency. Buybacks are a way for the project team to somehow contain what would be considered a possible dump. So instead of the cryptocurrency owners going to the exchanges and make sell orders, buybacks will just give them the opportunity to just sell them to the team itself with a better price deal most probably. That would avoid the price of the coins to fall as a dump is avoided.

That's exactly it. Burning and buybacks do not mean anything unless there is really a significant development going on with the project. If there isn't, even if you decide to burn 90% of your token supply, it won't make the remaining 10% more valuable. So, make some product, make sure it is something worth using in the real world, and market everything well. With that, even if you are not going to buyback or burn a single coin, the value will rise.

I actually have to agree with you. There’s no guarantee that the burning mechanism of any coin or token would increase the demand and price.

NewsCrypto’s case for example. For every subscribed membership, 20% of the total amount of tokens he bought and use for upgrading in packages are automatically burned. As long the project attracts investors and traders to buy more and hold, it would likely make a surge.

The project itself (no matter burn or no burn) must create or plan something that would excite a lot of traders and investors in buying more tokens. It’s all about thinking outside the box. I believe there are projects who didn’t burn tokens in their total supply that are surging because of the exciting concept it has, plus a big marketing budget.

Just my opinion only.

Although this has a risk that does not have any effect on prices, this is something good that the project does. Because this can sometimes make investors feel more secure and also this can create a pretty good trading activity.

A solid project with good buy backback system can be sustainable in my opinion. The most important thing is have good demands for a coin, and a well-made buyback system will be sustainable. And of course, the system has to be well decentralized to prevent abuses.

This is very difficult to estimate that how much progress a cryptocurrency can achieve with buyback procedure but one thing is clear with this procedure project owners make a good reputation between crypto community which is absolutely a plus point for them and their cryptocurrency so I think buyback procedure is a good move.

Because the investor will think the project that choose for his investment is not safe so the chance to sell the token in lose situation will be possible. They are afraid if they force themselve to keep holding the coin although its developer do the best thing according to their thought. Can you tell what project that you mean? I never heard about this information. Most all of project will just have a little value even doesn't have a value when something bad has happened.

Buybacks is best system where Traders can sell their token with a good price to team and people also start trusting those project. But i think Buybacks wouldn't help to increase the price of cryptocurrency. Actually it's depends on "how good the project is"

Not a new mechanism,,, it has been tried out before and I even invested in one such ICO that did a buyback scheme with a socalled bottom price. Guess what? Even guaranteed buyback schemes fail if the project owners decide to go back on that.

It was a real estate token, you get two tokens one is a pure security one is utility and the security one had the buyback,,, but in your project description it shows if you wait 3 rounds at least you get it all back. Too long in ICO business!

If you are thinking this model is never exist before and you are very wrong about that. There are so many projects have used the buyback modesl and it's still fail as when the demand is also decreasing and the coin will actually dead.

You must search more about that and i guess you can find a bunch of coins used this model.

I'd say no.

It doesn't make difference from what they have been doing before. I'm not optimistic with this idea or trend because it doesn't really buy the decision of the investors. What the investors like is how they could see the use of the project and token that they have been making.

That's all, no buy backs or burning. Because use case that shows its potential will create it's own economy.

Most ICOs have huge developers share. It depends who much lets say 30%. Tokens developers got for free. So when they buy back tokens to burn they simply buy tokens they hold. And since they hold so much, they last forever.

This ICO tokens are not money. They are not cryptocurrenices like Bitcoin or Monero. In most cases are a security backing a project. And in many cases that project is very bad. If it would be good they would crowdfund founds in a classic way and not need ICO.

The influence of buyback also depends on the community and the crowd. For fraudulent projects, the team will automatically unlock the token and sell off, causing the price to drop sharply then implementing a buy back strategy. It was not a fair game. You should only rely on coins with high capitalization, the risk will be much lower.

as far as I'm concerned Buyback is a good step to convince traders and investors that the coins or tokens of the project still have hope,
and of course, the price of the project will also increase

Buyback and token burning does not mean that the coin is good and that the future of that coin will be good or that it will pump big in the market. Whether a project is good depends entirely on what the team is developing. Many such projects have come and gone, leaving investors frustrated. Because without development, a coin cannot stay in the market for long by just buyingback and burning token. How much will they burn? the entire supply? If there is no development in their project then no one will buy their coins / tokens.

l do agree with your opinion, Buybacks is really good system about everything. It is so difficult to trust in any project. But those projects are really trustable as you mentioned. But if we are talking about the influence of buybacks on the value of a cryptocurrency, unfortunately, it can not affect prices.

i think buy back is a way to keep the price steady and avoid dumps. It also boost the investor confidence in the project. The project owner will use the money from fundraising to repurchase the coins in the market at a higher price than the market value of the coins, so that coin holders will make a profit.

I really agree projects that do do buybacks strategy can make the price of tokens go up, but according to my analysis of the strategy like this
won't last long. The price of tokens can go back down, and therefore the development team must work hard to make tokens became popular.
Because the more popular the token, the higher the demand for the token.This will make the price of the token even higher.

Buying back is one of the pretty good commitments for angel investors. I quite like projects with this buy back event, which means they still have enough budget to develop the project and are confident that the price of tokens will grow well again. This is also a message for investors to say that this is a potential project, the team can do bigger things.

This is a risky move after the distribution of the tokens what if the they didn't list in an exchange? Is in that a scam? I am strictly against it..

As far as I know this is purely like a plan, trust me if this doesn't go well you will lose your money for sure. Always focus on the project which has a strong team and it's development should be unique, never ever take such risky decisions it's my personal advice.

Based on my experience in a project that I participated in the past, the buy back usually happen in an exchange, they will set a rate and the number of coins that they will buy back, so investors that does not anymore trust the project, they can sell their coins and leave, but for some, they might continue holding and wait for the project to be more develop or wait for the next scheduled buy back.

It depends on the way the buy back is conducted, if the team is just selling from their stack of tokens which the developers hold like Binance is doing with their BNB tokens, it would have no effect on the price because it is not from the current circulating tokens but if it is being bought from the market direct it is a good buy-back and I will support the second, just the way LEO is doing. Another thing about the buy-back thing is that not all projects can do this, if a project is not generating revenue I don't see how they can implement this successful

   Disconnectme thanks for this simple explanation of buy-backs and how that works. I heard for that
but I didn't participate in any project that offers buy-backs. I have BNB, but they burn their tokens,
but that is totally different from the second option!
   I think buy-back option sounds like a good security measure for token holders, but in reality why
would project buy-back their own tokens, what is good in this for the project itself?

That's correct. Buy backs are mechanical methods employed by team to buffer the price wall. Especially if their is an unexpected or expected dump or in cases where there is no working product and the project thrives only on trading

That's a correct statement but the result will always like what already expected by the team. You must see how binance coin has been getting burned so many times and it's still not yet increased a lot.
This will give a short hype but when it comes to the long term and it may not bring a significant increase to the price of token.

The token acquisition usually only occurs in large projects and has a large investment because the development team will always have a way to attract investors to the project.

Of course, buying tokens will be a very difficult problem because they have to choose the time when the cheapest coin to ensure everything goes smoothly. Besides, can also burn to investors feel more secure when investing.

Buybacks is a good way to get more investors onboard but I don't think it makes big difference in increasing the value of any cryptocurrency. It helps get more people interested in your projects since it may make it seem that there is less risk involved in investing.

If the project has a large investment, the group will have a way to buy back to ensure the value of the coin will increase even higher in the future. Now very few projects can do this, but if the project can do then you should consider investing in that coin because that project will bring you a lot of high profits. Of course, there are still some cases after the acquisition, that coin continuously drops prices very quickly.

Repurchasing is one way to make artificial waves as if there is a lot of demand in the market, this is usually done on a large enough scale, so investors are interested in buying coins again and usually this strategy will not last long and then prices will return again after so long.

Why they need to buyback? Instead of spending money for these buybacks, why not they focus on the actual business/project related to that coin/token? That will definitely trigger more confident among investors to keep holding and new investors will arrive to buy more; a long term-sustaining growth could be achieved when the project development goes stronger rather than trying to attract investor with promise of buyback. It must be another innovation for hidden pump and dump; nothing more. So, you can always expect a wild dump to be followed.

Yes, a team should work on attracting investors by common and in reliable way and definitely not in one of market manipulation. I do see buyback as a whales manipulation and nothing more. All manipulations will always fail over the time. Because, artificial demand will not help in any means.

This is a good strategy of the project to overcome the price reduction, this can also pump up prices. I feel the team's decision to carry out this strategy is a good thing

That is not always having a good result as the buyback must have come from the team's profit. If that was coming from the decision to the premined coin and so many coins have already applied this and it doesn't give a huge impact to the price. Buyback is a good idea as long as it used regular profit that has gotten by the company to buy back to token from the market again.

If you read the content of the OP, You will not answer in general on that statement that you quoted above. The team will use atleast 80% of the profit in DYCO purchase. I don't know if "premine" is the right term for token allocated for team members since this is utility token which doesn't mine but it be completely nonsense if the funds for buyback are from the team token which will be liquidate to BTC then buyback? That's completely nonsense since there is freeze period for the team token.

It depends on how devs are doing buy-back, on what amount etc. For example Quarkchain  announced buy-back last summer for 25 mln, but this were false prmosing, as after 1st buy-back for 1 mln they just forget about their promising

If team announced Buyback, then that helps gathering public attention on that currency. People buy those coin so thay they could sell them to team, with a good price. but most of team, make faluse promise for pump their currency value

It depends on how many tokens are bought back, and the tokens that are buyback will be burned or not, if the team only buys but does not burn the token then all will be in vain. because people think that when the price of the pump, the team will sell all the tokens, if buy back and burn it can maintain price stability and can even get more expensive

And that is the main issue, the whole point of cryptocurrencies is to not rely on a centralized party to process your transactions or to determine the value of your coins, buybacks schemes try to make it seem as if there is a floor on how low the price of a coin will go to try to increase the number of investors that will be interested in such coin, but anyone that has kept an eye on the market of altcoins knows that the developers can go back on their word at any moment and when that happens all confidence is lost in the project and the price crashes as a result.

As such if that is the only attractive part of any project in which you could be interested you should stay away from it.

Yes I think buy back is good for every project and ofcourse it increases the value of the cryptocurrency and the credibility of the team. A lot of projects who launched the buy back program is often successful. The problem becomes how long the program is scheduled to last.

Buyback is a good initiative but the project need to be active with a progressive report. Project cannot depend on the buyback alone without innovation and adding new features to the project.

sometimes yes, but sometimes no
because its depends with the quality from project itself my friend
regards

Quality would always  be better than quantity because no matter how small the supply is, if the said demand isnt really that great then it would really still have that low price because the quality of project isnt really that good.

Come to look into those projects that havent even experience buybacks or some sort but do still able to fly with colors because they do have that exceptional quality on where anyone do needs or shall we say that it do have that actual usage compare to those projects that are just basically
copying other and just adding up some glitters and style just like this buyback system but actually it wont really make a difference because in the end of
the day it will always depend on quality not on quantitiy.

buy back will make the value of a coin increase if it is a project with a good fomo community and is well known. Often, good projects will know how to attract investors and they often use their profits to buy back and burn tokens. That's the same way CZ is working with Binance coin. After many times, the supply of BNB will decrease in the whole market and then people will gradually have to push the price of BNB higher than usual. that's the rule.

Only if they can sustained funds. Doing a buyback is good but that will need more funds, how about their budget for development? If this is a makerdao way to get back what they loss during the crash last march hope they better make it worth it for investors. 1k usd ia a huge money to fill in. Does anyone know which project will start on their platform? Or does they already announce the start of it? I wanted to review the project they first list here to know if its worth a penny.

with a buyback, there will be an increase in trust in the people involved in the project. however, buy back can also increase prices. it's very rare for a project to buy back. but, if they do so, chances are, the price of their product will be back to its original price, or even higher.

I think the only thing that buyback does is increase trust, making investors to realise that the project is here to stay, it's all down to how good the project is, both burning tokens and buying back won't do a thing if the use case is not good enough

It does not necessarily mean trust, buy back does not mean all investors will be able to sell their assets, only a percentage of the total coins/tokens sold will be entitled for buy back and we have to remember that the amount the devs are using to buy back is just the money they collected during the crowdsale, if they will do an exit scam after this, they can still take the rest of the money they didn't spend for buy back.


I agree, that's the only way a project will be able to gain trust from the investors, buy back is just part of the program but the most important is if the project has produce progress in a certain period of time.

No, it depends on whether or not those tokens are really valuable in the first place and have use other than for what their issuers are using them for.

Think about tokens as points issues by starbucks or by mcdonalds. If they issue 1 million cards today with 10 points each and each point is redeemable for $1. And tomorrow they destroy 500,000 cards. Do those points become redeemable for $2? No way.

It can build up some trust but that would be just temporary and yes its very rare for a project to have that buyback program
because most fake devs will surely comes after with the money that they had accumulated and wont tend to waste up on their
no value token and giving those funds back to rebuy their project.In that case, this signifies that the team behind is dedicated
towards their project but doesnt mean that it will ensure out success because it all matters on how they do perform or
making out updates.

at least if many cryptocurrency users are interested in the project and the coin is in constant demand, then the redemption of a certain amount of coins in the market provokes its shortage And thereby contributes to the value of this coin. if we consider the situation in this regard, then the buyback will always positively affect the further promotion of the coin in the cryptocurrency market.

The buyback must be done from the company's profit from selling the product into the public market. binance has already proven if the buyback itself will not help a lot when it comes to the market that has not been getting FOMO.

buying increase the value of a crypto so yeah buybacks did  although you cant see an imediate increase if other factors occur such as when the buyback amount was too low or let say many do buybacks but there are still people that sells too  .

its only sad that   buyback is hardly being done nowdays despite the fall of the price of the cryptos because its expected that people are on financial issue right now    . hoping that crisis like this wont last a long time

Buybacks is definitely helpful when it comes to a project especially, it can maintain the price and also demand will go up as the team got the holdings however there is still risk, you will never know if they are the one who is doing the dumps to acquire all or maybe, doing pumps so they could sell theirs. That's the problem unless they will be transparent in doing it.

Of course, the acquisition could increase the price of a cryptocurrency. It proves that the currency is valuable and can bring profits to users. And we will often buy the money that many people are interested in investing in. Currently the electronic market has a lot of different currencies and also different values. If it's you, which cryptocurrency would you choose to buy?

That's right, buybacks if not being transparent can also harmed the potential of the said project as chances that the team itself can ruined the entire valuation of their own project. Though if the team is transparent and they are really aiming for the best of their creation it can also lift the future as burning those said buybacks will cut the numbers of existing volumes of the coins.

The buyback token should be burned and it will never be released again to the market. As far as I know, if the team will never try to do that and there was no even a single project that has been doing it. If the buy back will come from the profit that owned by the company and that will actually affect the market.

true, to attract investors the team must make another strategy besides buying back coins that have been traded, I have participated in several projects that do that, but the price remains the same in the market, there is no high increase even though such a system is done

And if the coin is crap with no solid use case in the market, buyback is just futile. This strategy will only work if the team will make their platform usable to many and has good demand in the market. If they will just rely on traders, buyback is totally worthless.

but, I feel that it is quite influential. imagine, when you buy at ICO or pre ICO prices, and get a lot of bonuses under normal prices, and they intend to buy back, it will make investors interested. however, this only happens to projects that are truly trusted. it will increase the value and quality of the product, and the price of the token.

That case those who invested with the pre-ICO are safe with their money no matter what happen to the project as the buy back program basically makes them get their investment, I think the buy back program is also lower than the ICO price or those who offer a buy back program does not give a lot of bonuses to early investors or pre ICO investors as ordinary investors with a little investment will suffer when these big investors will dump.

you know if big investors sees a small percentage of profit, they will take that as that is short term and they will earn a significant amount since they invested a big amount of money. That's pretty it, they have to ensure that interest of all investors will be protected for the project to succeed.

if a large number of Buy Backs can affect prices,
many developers have buy back coins and the results are good, circulation is maintained again

The acquisition will not solve anything if the team has no future strategy. I think that instead of buying back, the group should spend that money listed at big exchanges because high liquidity exchanges will often attract a lot of new investors to the project.

Besides, it is possible to seek more partners to make the project gain more trust from people, and this will help investors feel comfortable choosing to hold in the long term.

Buyback is a technique to develop the project but the only buyback can not increase the value of cryptocurrency. To increase the value of cryptocurrency, there is a need for an active hardworking team, a realistic development plan. Buyback really helps to prevent sudden price drops and make the project more trustable. It can increase the value of cryptocurrency for some time but not permanently. 

If im a project owner then i would definitely choose up this option rather than spending the money on buying back. More partnerships and more exchange listing will really give out

or build confidence neither on its investors itself or into other new people as well.If they do able to see that this one is listed on various exchange then we cant really remove that kind of impression that

this might be a good project to support or trade on. Buying back isnt really a bad idea but as said all varies with teams effort on how would they go further aside from that buyback program.

The most important thing in the end of the day do talks about project relevance.

Not really going to make the p[rice of the coin to go up. But this impression is likely in the mind of those newbies who invest because there is a buyback program.  If the team is the ones gonna buy back which usually what is going to happen, you need to ask what are they going to do to the tokens they bought back?  Because if they sell it for a higher price later then they are just going to set up a sell wall.

Burning the tokens they bought might just make it increase the price since the circulation supply will be lesser.  Still not an assurance because if the project is crap then there is nothing else to hope for.

I couldn't see the assurance for it helps to pump and become a valuable coin in the market. This kind of trick is just like to get promotion and gives attraction to the community but that was not we wanted to see instead, having their project turns into a promising one with having a working product in the market. That could be the first thing that Devs would have to work on and not that encouraging people to do buybacks because investors will surely have their investment if they could see the potentiality of that particular coin. And that time, we can see its market demand and lifted the price.

The buyback must come from the market and when it comes to the event that has already made by the developers and that will not affect the price. I remember some developers were putting the rules to buy back the coin on the specific price and this will not affect the price of the token.