Buy-back strategy helps Chinese crypto surging recently
A few days ago, the crypto market continues to be depressed after the withdrawal of the price of Bitcoin, but the Chinese cryptos are surging against the trend. Early this month, Chinese cryptos have become the major force of rise, with GXC surgeing up 37% and NAS 46%. Over the past month, returns of all Chinese cryptoes is keeping positive, with GXC145%, ETP 127% and Nas 97%, the lowest monthly increase has reached 11%.
June 4th, the founder of GXC announced the first round of buy-back, with 170000 GXC was bought back. June 10th, “5 million dollars buy-back” was finished by 15%. GXC claims to finish the rest 85% buy-back plan within the next two months. Soon afterwards, LongBit, the exchange owned by GXC was launched, GXC coin can be used to buy the platform coin LBP.
At the same time, the founder of NAS would prepare 10 billion to buy back NAS coin. NAS believes it would further expand the influence of NAS ecology, it also helps lay a better community foundation for the upcoming Smart Asset, a new pattern of asset issuance.
However, there arise many doubts about buy-back phenomenon in the crypto market. Many cryptoes make announcement before they started buying back. The buy-back strategy was suspected as a way of “pump”. Someone even suspects the authenticity of buy-back fund.
NULS also announced its buy-back plan to stimulate construction of its upcomin NULS 2.0 ecological project. After the release of its repurchase news, the Huobi showed that the price of NULS soared up to 20% in nearly an hour.
“Buy-back” is a favorable factor easy for investors to understand. The “buy-back” strategy is suitable for those project without prospect or lack technology support. The most common favorable factors in crypto projects are technology updating, cooperation, or acquisition, which are transparent for crypto investors. On the contrary, the cost, time and spot of repurchasing are ambiguous for investors. All in all, after repurchase plan released, investors must keep clam before join in.