Lately, there have been Token buyback news everywhere.
I was about to get in, but almost misunderstood "project buying coins" as "project making money for me" 😂
But after looking at several popular projects, I found that even though they all call it buyback, the story after buying is completely different:
🔥 $HYPE: Buy then burn
Transaction fees entering the Assistance Fund are automatically converted to HYPE and burned. The supply does decrease, but if you bought at a high price, you can still lose.
🏦 $AAVE: Buy back to the treasury
The coins in the buyback plan are used for rewards, grants, and other expenses, not permanently removed. The key is whether it can reduce the need to raise funds or buy coins from the market later; it can't be directly considered deflationary.
💰 $PENDLE: Buy then distribute to stakers
80% of V2-related fees are used for buybacks, then rewards are distributed to eligible active sPENDLE holders. If you only hold PENDLE on exchanges, this income won't automatically reach you.
So if you really want to study getting in, just looking at "high buyback ratio" is not enough:
How much money is actually spent buying every day? How big is it relative to market cap? How long can it last? How much unlocks at the same time?
A small market cap project buying hundreds of thousands daily and a large market cap project buying the same amount daily are completely different in strength.
I prefer to study buybacks supported by sustained income rather than being rushed to get in by a buyback poster.
Are you buying long-term demand or just the bullish spike after the announcement?
Buybacks don't guarantee price increase; this is just a mechanism observation.
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