Do buybacks increase the value of a cryptocurrency?

[itsv]

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.

[MCobian]

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.

[cosmofly]

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.

[mahilchii]

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.

[Botnake]

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..

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.

[disconnectme]

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

[Bezobraznike]

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?

[SolarWindMiningCompany]

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.

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

[shinratensei_]

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.

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.

[alan2here]

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.

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.

[unusualfacts30]

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.

[kynaz]

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.

[Partisson]

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.

[el kaka22]

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

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.

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.

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.

[cepot9]

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

[X-ray]

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.

[Coin_trader]

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.

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.

[magisterr]

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

[Mehedi72]

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

[reza7777]

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