Do buybacks increase the value of a cryptocurrency? - page 3.

alan2here

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Quote from: itsv on May 18, 2020, 07:09:15 PM

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.

shinratensei_

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Quote from: SolarWindMiningCompany on May 21, 2020, 05:42:31 PM

Quote from: itsv on May 18, 2020, 07:09:15 PM

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.

SolarWindMiningCompany

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Quote from: itsv on May 18, 2020, 07:09:15 PM

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

Bezobraznike

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Quote from: disconnectme on May 19, 2020, 09:39:47 AM

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?

disconnectme

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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

Botnake

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Quote from: mahilchii on May 19, 2020, 12:50:59 AM

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.

mahilchii

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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.

cosmofly

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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.

MCobian

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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.

itsv

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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.

StephenJH

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Quote from: Nazmul012 on May 18, 2020, 12:02:57 AM

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.

ScamViruS

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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.

Dollar_Hunter

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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

mnporter2001

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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.

Febo

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

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.

jossiel

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

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.

Teraboy

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

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.

leea-1334

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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!

Nazmul012

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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"

ballerin and giroud

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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

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.

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