buyback

Token buybacks will not save your price — at least not in this market
For a long time, crypto believed that buybacks were the cleanest way to 'return value' to token holders.
The logic seemed perfect. A protocol attracts users. Users generate fees. The fees become revenue. The revenue is used to buy back tokens. A reduced supply drives up the price, which attracts more users, more activity, more fees, and even more buybacks. In a bull market, this inertia wheel not only works — it seems inevitable.

For a long time, crypto believed buybacks were the cleanest way to “return value” to token holders.
The logic sounded flawless. A protocol attracts users. Users generate fees. Fees become revenue. Revenue is used to buy back tokens. Reduced supply pushes the price up, which attracts more users, more activity, more fees, and even more buybacks. In a bull market, this flywheel doesn’t just work — it feels inevitable.
But once the market turns south, that story starts to break down fast.
Across the board, we’ve seen tokens with aggressive buyback programs — even ones trading at seemingly attractive valuations — fall just as hard as tokens with no buyback mechanism at all. The issue isn’t that buybacks are conceptually wrong. The issue is that buybacks are completely at the mercy of market conditions.
When sentiment flips, users leave. Usage declines. Fees shrink. Buyback volume drops with them. The buying pressure everyone was counting on quietly disappears. At that point, buybacks stop being a growth engine and start looking more like a bandage on a much deeper wound.
If you look at the protocols with the highest daily buyback value over the past few months, a clear pattern emerges. Most of them are still down significantly, with only a handful of exceptions. The presence of buybacks didn’t change the direction — it merely softened the impact.
The deeper problem lies in where buybacks actually come from. They’re funded by revenue or treasury capital, while protocol performance is tightly coupled to the broader market cycle. When conditions worsen, both sides of that equation weaken at the same time.
A good example is HYPE from Hyperliquid. The project itself isn’t failing. Product–market fit is clear, the product is strong, and user growth has held up surprisingly well in a difficult environment. Yet the token is still down roughly 50% from its all-time high.

The reason isn’t insufficient buybacks. It’s supply.
Every day, the market has to absorb more than 200,000 HYPE tokens being unlocked. The buyback program only offsets a fraction of that flow. If just around one-third of those unlocked tokens turn into real sell pressure, the buyback loses the battle on flows alone — even before factoring in retail exits or trader positioning.
In situations like this, buybacks don’t reverse price trends. At best, they slow the decline. At worst, they quietly drain the treasury while fighting a supply wave that’s several times larger.
What’s especially telling is that even some of the most aggressive buyback programs in the current market haven’t been able to change the outcome. That raises an uncomfortable question: is buyback truly a form of value accrual, or has it become a comforting narrative that only works when liquidity is abundant?
If you’re buying a token primarily because “the project does buybacks,” it’s probably worth pausing for a moment. Ask where that buyback funding actually comes from. Ask whether it’s large enough to meaningfully offset upcoming unlocks. And ask whether you’re looking at real value capture — or simply a well-packaged story designed to trigger FOMO.
Sometimes, buybacks aren’t a solution. They’re just a delay.
#Binance #wendy #Buyback $ASTER $BNB

For a long time, the crypto community believed that buybacks were the cleanest way to 'return value' to token holders.
The logic sounded impeccable. A protocol attracts users. Users generate fees. The fees are converted into revenue. The revenue is used to buy back tokens. The reduced supply elevates the price, which attracts more users, more activity, more fees, and even more buybacks. In a bull market, this flywheel not only works, it feels inevitable.