Buybacks get pushback, and markets rebound

Markets rebounded yesterday, snapping a multi-day losing streak, driven by hopes of potential rollbacks on Trump-era tariffs. All major indices saw gains, with Bitcoin rising 2.36% and the Nasdaq increasing by 1.15%. The cryptocurrency sector also showed resilience, particularly within DePIN and DeFi, which rose by 6.7% and 6.1%, respectively. Notably, the AI sector experienced a decline of 4%, despite a 7.3% increase since the Oct. 10 crypto crash. Several subnet tokens have remained above their pre-crash levels, indicating sustained interest. The upcoming TAO halving scheduled for December is anticipated to influence market flows positively. Additionally, the proposed HIP-5 plan aims to allocate 1% of Hyperliquid’s fees into a buyback fund for specific tokens, facing criticism for potentially diverting focus from strong projects while favoring investors disproportionately. Arguments suggest this could undermine the quality of projects in the HyperEVM ecosystem, as it might lead to short-term price boosts without fostering genuine long-term growth.

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