Topic: Do buybacks increase the value of a cryptocurrency? - page 4. (Read 570 times)
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.
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.
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.
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.
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.
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.
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.
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
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
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.
buy back is more like a security or insurance but it's not the main reason why a price will rise.
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?
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?
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