Buyback in crypto

By Kromatika | Kromatika Education | 12 Apr 2022

In the cryptocurrency industry, buyback is a notion that involves the creator of a cryptocurrency repurchasing it, similar to traditional promotional approaches. The goal of this strategy is to raise the asset's worth. When the buyback is finished, the entity that executed it has several options: distribute the redeemed tokens to users or destroy the tokens by sending them to an inaccessible address.

Some staking systems, for example, may allow users to benefit from their actions, and the platform will then buy back its tokens to redistribute them and enhance the value of its token. The buyback procedure frequently runs concurrently with the burn process. The buyback, which is usually reserved for projects with a limited number of tokens, allows the asset's price to climb before being destroyed, enhancing its scarcity.

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