I have been thinking about what the difference is between coins and stocks?
I have always believed that if tokens cannot capture the value of the project, then they are useless. Just like ena, it feels like a giveaway; after researching, neutral hedging strategies that eat funding are good, but what does that have to do with the coin ena?
But after PUMP and Hype, it feels like a project with buybacks can be valued using traditional methods like PE valuation. I also feel that as long as there are projects with buybacks, the tokens are likely to capture the project value. Later, I kept thinking that continuous buybacks seem to carry a certain marketing attribute. If the project party keeps using money for marketing, it will lead to not having enough funds to develop the business. Just like PDD, Tesla never buys back its own stock, nor does it pay dividends. However, the company's profits, even if not distributed as dividends or buybacks, are still recorded on the balance sheet.
So it seems to return to the starting point: if tokens do not have buybacks, it is difficult to capture project value. But tokens that cannot capture value may affect the dev's ability to raise funds for selling tokens next time due to their low price. So, is it better to have buybacks or not? Can tokens without buybacks be valued using traditional PE methods?
$ENA $pump $hype
