Aave Labs team members: Token buybacks do not create value by themselves and should be viewed as a supplementary measure rather than a plan

Odaily Planet Daily reports that Aave Labs team member Kolten stated on the X platform that crypto projects or DAOs should conduct buybacks when they have excess cash and believe asset prices are undervalued. The strategy of tech giant Apple is to prioritize investing in its own business, only conducting buybacks when cash reserves are sufficient and stocks are considered the best investment option, focusing on competitive advantages. This principle applies to any asset, with the main drivers of price being adoption rate, market dominance, and compelling narratives. Buybacks can signal confidence and reduce token circulation, but they do not create value by themselves and should be viewed as a supplementary measure rather than a core plan. For tokens, when the new market supply exceeds the buyback volume, the effectiveness of buybacks will further diminish. Many crypto companies overly focus on native crypto buyers, neglecting that 95% of potential investors are not concerned with tokenomics. Most buyers have never heard of crypto Twitter; they care more about product features and easy-to-understand stories. Additionally, most crypto assets currently exhibit correlated trading characteristics. Until projects can attract users and capital independent of the overall crypto market, independent valuation remains difficult, and buybacks are unlikely to have a significant impact.