The cryptocurrency protocol Sky has invested $75 million in a buyback plan to repurchase its tokens over the past six months, with prices rising 8.1% since February.
According to Sky on Monday, Sky was renamed by Maker in August 2024 and repurchased 73 million SKY tokens using its platform stablecoin USDS.
The company added that since the plan was first implemented at the end of February, the cumulative buyback expenditure has reached 75 million USDS.
Buybacks are a common mechanism used by crypto projects to boost token prices. By removing tokens from circulation to limit supply, it theoretically increases the token's value.
Data shows that the SKY buyback plan was launched on February 24, with the platform investing $4.28 million that month.
According to CoinGecko, at that time, the trading price of SKY was slightly above $0.063, and it has now risen by 8.1%, with the current price slightly above $0.0685.
At the end of July, SKY reached a high of $0.096, close to last December's historical peak of slightly above $0.1. Since then, it has declined along with the broader market, but failed to rebound during the market recovery in mid-August.
In contrast, tokens from similar platforms Uniswap (UNI) and Aave (AAVE) have risen by 6% and 25.8%, respectively, since Sky initiated its buyback, both experiencing a rebound in mid-August.
The Trump family's cryptocurrency platform World Liberty Financial also proposed a token buyback and burn plan to the community on Monday.
The project suggests using all protocol transaction fees for buybacks and permanently destroying its namesake token, World Liberty Financial (WLFI). WLFI's price has dropped since its launch on the secondary market.
WLFI has fallen over 16% since it began trading nearly 18 hours ago, with a current price of $0.23. Investors who bought the token at the earliest price of $0.015 can still achieve over 1400% returns.
In mid-July, the meme coin platform Pump.fun also launched a token buyback plan, using its revenue to repurchase Pump.fun (PUMP) tokens, with $66.5 million invested as of Tuesday.
According to CoinGecko data, its buyback plan seems to be effective. The token price has risen nearly 30% over the past month, with a cumulative increase of nearly 70% since the historical low on July 29.
Related: CoinMarketCap: WLFI, supported by the Trump family, will unlock 27 billion tokens upon launch.
Original article: “Sky Launches $7.5 Million Token Buyback Plan, Driving SKY Token Price Up 8% in 6 Months”
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