Chainfeeds Preface:

Is this round of buyback a bet on long-term value or an unavoidable move under market pressure?

Article Source:

https://www.chaincatcher.com/article/2174092

Article Author:

ChainCatcher

Perspective:

ChainCatcher: The current state of the crypto market may be the direct driver of this buyback wave. Since the beginning of 2025, global macroeconomic uncertainty coupled with the overall crypto market correction has led to significant drops in token prices, with some project tokens even falling to historical lows. Facing market downturn and investor confidence shortage, buybacks have become a strategy for projects to stabilize their ecosystem and reshape market expectations. More importantly, buybacks send a key signal to the market - project teams still have full confidence in their future development and are willing to invest funds to maintain token value, rather than letting prices continue to bottom out. However, buybacks are not a panacea, but more like a litmus test of market confidence. Whether the buyback wave can truly promote market development or is just a short-term price stimulus remains a clear divide within the industry. On one hand, supporters believe buybacks are a positive feedback from project teams about their own value, helping to enhance market trust; on the other hand, skeptics argue that buybacks are only a temporary price support and cannot truly solve long-term growth problems. Crypto KOL qinbafrank believes the emergence of the buyback wave means project teams are beginning to value token value injection. Over the past year, small-cap tokens have undergone strong clearing, which has forced project teams to adopt healthier growth paths - either focusing on truly innovative value implementation, lowering valuation starting points to allow secondary market investors to share growth dividends, or injecting part of revenue into token economic models to enhance token value. He compares the crypto market's buyback wave to the stock market buyback trend, believing that if this trend continues, it will bring positive impacts to industry development. Doubts are equally strong. Crypto KOL Big Fish states: buybacks are only short-term benefits and cannot truly support long-term value. Instead of consuming funds on buybacks, it would be better to invest in product research and ecosystem expansion to build a more sustainable growth model. In his view, market value enhancement fundamentally relies on continuous innovation, not simple supply and demand regulation. On this, Messari researcher MONK analyzed the limitations of buybacks. He pointed out that projects like RAY, GMX, GNS, and SNX have programmatically bought back millions of dollars worth of tokens, but these tokens' current value is far below the buyback cost. MONK states that buybacks are unrelated to price trends, which are primarily driven by revenue growth and narrative formation.