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

Keyrock's Amir Hajian warns that token buybacks in the crypto industry, which have surged over 400% since 2024, present a double-edged sword. While buybacks signal maturity by showing commitment to returning value to token holders, they often divert funds away from innovation and growth. Many protocols rely on treasury funds for these buybacks rather than actual revenues, risking financial sustainability. Hajian emphasizes that protocols need to adopt disciplined, metrics-based buyback strategies tied to market conditions, rather than impulsively repurchasing tokens. The report suggests that matured projects should commence buybacks only when revenues are stable, their treasury has a solid operational runway, and the token is undervalued. This approach reflects a shift from viewing buybacks as signs of success to understanding the importance of strategic timing, aiming for long-term viability rather than short-term visibility.

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