Keyrock: Crypto’s Buyback Boom Tests the Industry’s Financial Maturity

Token buybacks in the cryptocurrency sector have increased by over 400% since 2024, reaching nearly $800 million in the third quarter of 2025. Amir Hajian from Keyrock warns that these buybacks are primarily funded by treasuries rather than revenue, risking future growth by diverting funds from innovation. He highlights that while buybacks signal confidence, they must evolve into disciplined capital policies. Hajian suggests protocols should only initiate buybacks when revenues are stable and cash reserves can sustain operations for at least two years. New models are emerging, linking buybacks to valuation metrics and market conditions, aiming for sustainability rather than speculation. Additionally, protocols need to execute buybacks judiciously, considering the effects on market liquidity. Ultimately, the real test of maturity lies in protocols' ability to demonstrate restraint and financial prudence rather than merely the existence of a buyback policy.

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