November 30, 2022

Crypto Buyback And Its Impact On Token Supply

Story: Mohd Javed

Crypto buyback is a popular crypto tool for boosting token prices.

In this process, a corporation buys back its crypto assets, reducing its supply and increasing overall value.

The buyback in crypto does not erase the supply of a token but reduce its circulation at that time.

The immediate impact of a buyback program would be on the token supply and its price.

Sometimes a buyback could help tokens stand up to the losses due to volatile environments.

In other words, the buyback method is an integral part of tokenomics that deals with the supply and demand dynamics of cryptocurrencies.

Companies are using the token buyback programs as a mechanism to transfer value to the token holders.