I've seen many projects that have increased by dozens of times and then start疯狂回购, trying to support with real money. But what’s the result? The price instead falls even more sharply.

Many people find it hard to understand——the project team is spending money to buy tokens, so why does the price keep dropping? Actually, there’s a very simple arithmetic behind this. The essence of a price decline is just one thing: the volume sold is greater than the volume bought. So here’s the question: who is dumping? Who holds so many chips?

Where does the project team’s money for buybacks come from? Most often, it’s early-stage financing or ecosystem revenue. But the chips waiting to be sold on the market are far more than expected——they could be early investors, institutions, or retail investors who bought at high levels. Their selling pressure far exceeds the project’s buyback efforts. The supply side is much stronger than the demand side, so how can the price not fall? This isn’t something that buybacks can solve; it’s because the valuation itself has been overestimated.