Jupiter co-founder "Token price impact limited... considering stopping buybacks"

Jupiter (JUP), a decentralized exchange (DEX) based on Solana (SOL), is reviewing whether to stop token buybacks.

On the 3rd (KST), according to Cryptopolitan, a crypto asset (cryptocurrency) specialized media, Si-ong Ong, Jupiter co-founder, said via X (formerly Twitter), "Jupiter has invested more than $70 million in token buybacks over the past year," adding, "however, it appears to have had little impact on the price." He continued, "Therefore we are considering stopping buybacks and providing the funds used for buybacks as incentives to users."

This has prompted backlash within the Jupiter community. One investor said, "If sustained revenue growth is combined with buybacks, effects will appear in the long term," arguing, "If the protocol steadily expands, the number of tokens in circulation will be reduced more, which can lead to price increases in the long term."

Another investor also said, "Buybacks are an important factor in protecting and stabilizing a token's value," expressing concern that "if such a decision is implemented, token price volatility may increase, which could create uncertainty for investors."