Ex-Messari analyst advocates token buybacks for crypto holders

Former Messari analyst Tulip King stated that crypto holders lack the legal protections afforded to equity investors, making long-term token buybacks essential for projects. King highlighted that shareholders can exercise voting rights and hold companies accountable, while crypto holders generally do not have these rights. Even when projects generate revenue, token holders often do not own stakes in the companies profiting from that revenue, leaving them dependent on promises from project teams. Consequently, King emphasized that teams have a moral obligation to demonstrate long-term alignment with token holders through buybacks, despite the absence of legal requirements. He noted that buybacks could elevate prices by decreasing circulating supply and provide price support during market downturns, although these effects would only compound over time if the project’s business remains sustainable.

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