Token buybacks have never been a business model.

To put it simply, it's just a capital allocation decision. The problem is—too many projects in the crypto space treat buybacks as a lifeline, using them to cover up the fact that there is no real product-market fit.

This is completely different from traditional stock buybacks. Stock repurchases usually occur when a company is already mature, with stable operations and ample cash flow. But crypto projects? Many haven't even figured out their core value, yet they start spending money on token buybacks in an attempt to boost the price.

Here's the difference: buybacks in traditional companies are the icing on the cake, while in the crypto world, buybacks often serve as a cover-up—masking weak user growth, insufficient active engagement, and a lack of genuine demand. In the long run, buybacks without solid product support are ultimately just a way to quench thirst with poison.