Do buybacks increase the value of a cryptocurrency?

[South Park]

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!

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.

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[reallester]

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?

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.

[Zemomtum]

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.

[republicrypto]

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

[stomachgrowls]

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.

[drlukacs]

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.

[joshua123]

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.

[Dr.Osh]

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.

[KaratX]

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

[Botnake]

I think the only thing that buyback does is increase trust, making investors to realise that the project is here to stay,

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.

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

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.

[slaman29]

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

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.

[dunfida]

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.

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.

[whyrqa]

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.

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.

[bittick]

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.

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.

[imstillthebest]

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

[patz22]

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.

[bobitza]

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

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?

[Golftech]

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.

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.

[Psynthax]

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

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?

The buyback will increase its price only when they burn the tokens bought in the market. Otherwise, if they release the buyback token again in the market makes the value of a coin might decrease even more. The buyback is a good plan, but the company should follow some measures in order to increase the price.

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.

[rudin123]

no, buyback is not a new way to attract investors and there are already many examples of projects that do it that way but still cannot make a big demand in the market. ways like that can be done if the product has attracted a lot of people

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