The Crypto Assets sector is introducing funds management strategies from TradFi, and Token buybacks have become an emerging trend. The latest data shows that the total amount of Token buybacks conducted by major protocols each week has reached approximately $40 million. In this trend, platforms like Hyperliquid and Pump have stood out, contributing $24 million and $10 million in buybacks, respectively.

This buyback mechanism is essentially akin to corporate stock buybacks. Its main purpose is to influence the Token price by reducing the circulating supply of Tokens in the market, while also conveying the protocol's confidence in future development to the market. However, the effectiveness of this strategy is not consistent. Some protocols have indeed seen a noticeable price increase in the short term after implementing buybacks, but there are also protocols that face price pressure after the buyback efforts diminish or come to an end.

It is worth noting that the sustainability of Token buybacks largely depends on the revenue levels and operational capabilities of the protocol itself. Platforms that can continuously generate high revenue are naturally more capable of maintaining a stable buyback plan. This is quite similar to the situation when traditional enterprises conduct stock buybacks.

As the crypto assets market continues to mature, we can foresee that more strategies from the TradFi sector will be introduced and improved. Token buybacks, as one of these strategies, not only reflect the confidence of the project parties in their own development but also provide investors with a new dimension to assess the project's value. However, when investors focus on buyback news, they should also comprehensively consider various factors such as the project's fundamentals and market environment to make more rational investment decisions.