Token buybacks are booming in crypto, but their value is disputed

Crypto projects are increasingly using revenue to buy back and burn their own tokens, with spending in 2026 reaching about $640 million so far. The practice has been especially prominent among projects such as Hyperliquid and Pump.fun, which have directed large shares of revenue toward buybacks. Supporters say buybacks can help align token value with protocol usage by creating demand and reducing circulating supply. Some projects also use bought tokens in their treasuries rather than burning them, aiming to reward longterm participants and preserve flexibility. The article also notes the tradeoffs. Money used for buybacks could instead fund development, hiring, or broader business growth, and buybacks do not guarantee higher token prices or a stronger underlying protocol. Regulators may also examine whether these token programs resemble dividends or securitieslike returns.