Do buybacks increase the value of a cryptocurrency? - page 2.

Botnake

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Quote from: KaratX on May 26, 2020, 04:25:50 AM

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.

Quote from: KaratX on May 26, 2020, 04:25:50 AM

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.

KaratX

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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

Dr.Osh

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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.

joshua123

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Quote from: drlukacs on May 26, 2020, 12:05:54 AM

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.

drlukacs

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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.

stomachgrowls

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Quote from: Zemomtum on May 25, 2020, 05:46:37 PM

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.

Quote from: republicrypto on May 25, 2020, 06:27:01 PM

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.

republicrypto

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Keep it Simple guys :)

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

Zemomtum

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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.

reallester

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Quote from: HodlerKing101 on May 16, 2020, 10:02:15 PM

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.

South Park

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Quote from: leea-1334 on May 18, 2020, 01:56:36 AM

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.

reza7777

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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

Mehedi72

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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

magisterr

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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

Coin_trader

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Quote from: X-ray on May 23, 2020, 02:09:50 AM

Quote from: cepot9 on May 22, 2020, 12:23:32 PM

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.

Quote from: HodlerKing101 on May 16, 2020, 10:02:15 PM

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.

X-ray

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Quote from: cepot9 on May 22, 2020, 12:23:32 PM

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.

cepot9

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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

el kaka22

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Quote from: t3m4nc0k on May 17, 2020, 06:14:42 AM

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.

Quote from: samcrypto on May 17, 2020, 09:52:25 AM

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.

Partisson

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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.

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Quote from: unusualfacts30 on May 22, 2020, 01:55:02 AM

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.

unusualfacts30

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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.

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