Do buybacks increase the value of a cryptocurrency?

[HodlerKing101]

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.



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?

[Viscore]

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.

[t3m4nc0k]

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

[lunnatic]

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

[Getmon]

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.

[Getmon]

Burning the supply doesn’t guarantee a big pump on price in the future, you must understand that this market needs a real service and a real usage of the system, if a shit token burned the half of their supply it doesn’t mean it will go pump and become a good token. This strategy has been done by many tokens, and very few of them succeed and if I were those developer of the project, I’d rather create a new program and do the best marketing so they can attract investors.

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.

[cheezcarls]

Burning the supply doesn’t guarantee a big pump on price in the future, you must understand that this market needs a real service and a real usage of the system, if a shit token burned the half of their supply it doesn’t mean it will go pump and become a good token. This strategy has been done by many tokens, and very few of them succeed and if I were those developer of the project, I’d rather create a new program and do the best marketing so they can attract investors.

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.

[cassavachips]

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.

[Ucy]

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

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.

[Kunnu]

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.

[ballerin and giroud]

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

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.

[Nazmul012]

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"

[leea-1334]

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!

[Teraboy]

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?

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.

[jossiel]

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?

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.

[Febo]

Do buybacks increase the value of a cryptocurrency?

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.

[mnporter2001]

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.

[Dollar_Hunter]

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

[ScamViruS]

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.

[StephenJH]

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"

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.