CM
CM|Sep 29, 2025 09:11
People often ask a question: if there's a token buyback, why is the price still dropping? Actually, the buyback model was experimented with by some small projects in the very early days of DeFi. It's not an economic model that can dictate token prices—unless the market cap is extremely low, but such cases are very rare. The significance of a buyback is to tell the market 'I can make money,' allowing investors to quantify and pay for the future. It's somewhat similar to calculating PE.
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