Recently there was a pretty interesting piece of news.
This year, many Crypto projects have cumulatively spent $640 million to buy back their own tokens. Hyperliquid and pump.fun are both prominent examples.
When many people see a buyback, their first reaction is:
“Isn’t this bullish?”
But I think what’s truly worth looking at isn’t whether there’s a buyback—it’s what happens after the buyback.
Are real users continuing to grow?
Is protocol revenue still increasing?
Has on-chain activity become more active?
Or is it just propping up the price by reducing circulating supply?
In traditional stock markets, whether share buybacks can improve value long-term ultimately still depends on the company’s profitability.
Crypto is the same.
If a project has only buybacks and no real use cases, even the biggest “bullish” signals are unlikely to keep the market supported for long.
So when I evaluate projects, I first look at:
- Whether on-chain transactions continue to grow;
- Whether the flow of funds is healthy;
- Whether protocol revenue is increasing;
- Whether there’s real cash flow behind the buybacks.
Lately, I’ve been watching these data points together on Ave.ai.
I’m increasingly convinced that:
Price can be driven by sentiment.
But in the long run, real data ultimately determines value.
What do you think—will Token Buybacks become a long-term trend in Crypto, or just a defensive strategy during the bear market?
This year, many Crypto projects have cumulatively spent $640 million to buy back their own tokens. Hyperliquid and pump.fun are both prominent examples.
When many people see a buyback, their first reaction is:
“Isn’t this bullish?”
But I think what’s truly worth looking at isn’t whether there’s a buyback—it’s what happens after the buyback.
Are real users continuing to grow?
Is protocol revenue still increasing?
Has on-chain activity become more active?
Or is it just propping up the price by reducing circulating supply?
In traditional stock markets, whether share buybacks can improve value long-term ultimately still depends on the company’s profitability.
Crypto is the same.
If a project has only buybacks and no real use cases, even the biggest “bullish” signals are unlikely to keep the market supported for long.
So when I evaluate projects, I first look at:
- Whether on-chain transactions continue to grow;
- Whether the flow of funds is healthy;
- Whether protocol revenue is increasing;
- Whether there’s real cash flow behind the buybacks.
Lately, I’ve been watching these data points together on Ave.ai.
I’m increasingly convinced that:
Price can be driven by sentiment.
But in the long run, real data ultimately determines value.
What do you think—will Token Buybacks become a long-term trend in Crypto, or just a defensive strategy during the bear market?