ANALYSIS: Crypto projects have spent a record $638M on token buybacks this year, with Hyperliquid and Pump.​fun accounting for nearly 90%. But are they actually working? Read on for the full analysis.

What happened

Crypto projects have spent a record $638 million on token buybacks this year, with Hyperliquid and Pump.fun accounting for nearly 90% of that total. The article questions whether these buybacks are actually working.

Confirmed

Global impact / market context

Token buybacks use project funds to buy tokens from the market, which can support prices. If they are not working, projects may waste money, and investors could see token values fall, affecting their holdings.

Analyst inference

This record spending suggests crypto projects are trying to boost token prices amid market uncertainty. However, the concentration in two projects means most buybacks are not broad-based, and their effectiveness remains unproven.

Analyst inference

What to watch

1. Watch whether Hyperliquid and Pump.fun continue their buyback pace, as they account for nearly 90% of the $638 million total, according to the article. Confirmed
2. Investors should consider asking projects to disclose buyback results, such as price changes or trading volume, to judge if the spending is justified. Proposed
3. If buybacks fail to lift token prices, projects may shift to other strategies, like spending on development or rewards, which could change investor returns. Analyst inference

Evidence

• x.com