- Jupiter co-founder said token buybacks have limited impact on price and that they are considering stopping buybacks.
- They said they are discussing converting the funds used for buybacks into user incentives.
- Some investors said they are concerned that stopping buybacks could increase token price volatility and investor uncertainty.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
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."
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