Ansem Points Out That Buybacks Are Ineffective for Coin Prices, Trust Premium Is More Important

Renowned trader Ansem posted on X, stating that buybacks have a limited impact on coin prices. He illustrated this by comparing Hyperliquid's annual revenue of $800 million with Pump.fun's annual revenue of $440 million, while HYPE's FDV reached $65 billion, and PUMP's FDV was only $1.4 billion. Despite both teams regularly using business profits for buybacks, there is a significant difference in their price-to-sales ratios. This gap reflects the market's trust premium in the teams, which stems from their performance and decision-making in the market. Hyperliquid focuses on product delivery and rewards its core users who contribute the most to the platform, whereas Pump.fun, despite having high revenue and fundraising, has failed to fulfill its commitments to users, leading to a lack of trust from core users. Therefore, in addition to tangible value derived from revenue and other metrics, intangible values such as trust, memes, and attention are equally important in the market, though they are currently discussed less.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.