4 ms·
The buybacks can only be done with real money. This is not an opinion, it's a hard fact since buybacks are done on the open market. Sure, the directors who hand
by redpiller 5y ago
The buybacks can only be done with real money. This is not an opinion, it's a hard fact since buybacks are done on the open market. Sure, the directors who handle finance could fake profit by taking on debt and using it to buyback the token to drive up the price artificially... But there is no incentive for someone to commit such crime since the buybacks benefit the whole community and not specifically the attacker. Also, the community can see if a director is selling their tokens (since it's all on the blockchain and the director's wallet is known).
A director could potentially do something elaborate like buy a lot of tokens at a low price anonymously, then take a bank loan and use it to pump up the price through fake buybacks then dump for a higher price some years later hoping that they don't get caught by their bank in the meantime for misusing the credit... But then why would they use our blockchain and jeopardize the value of their own large director's stake (from their main wallet) with such scheme? Why not use a random token not affiliated with them and which has lower volume where this scheme would have more effect on price and where the attacker has nothing at stake?
No matter which way you look at it, this is a huge transparency improvement over shares.