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Former Messari analyst Tulip King argued that crypto holders lack the legal protections available to equity investors, making long-term token buybacks necessary for projects.
King said on X that shareholders can exercise voting rights and hold companies legally accountable, while crypto holders generally lack those rights. Even when a project generates revenue, token holders often do not own any stake in the company that receives that profit, King said, adding that holders are ultimately left relying on promises from project teams. As a result, teams have a moral responsibility to show long-term alignment with token holders through buybacks even without a legal obligation, King said.
King added that buybacks can help lift prices by reducing circulating supply and support prices during market downturns, although those effects can compound over time only if the project’s business remains sustainable.