VeChain Co-Founder Announces $25m Buyback For VET Coin

The co-founder of VeChain, Sunny Lu has just announced that a $25 million buyback plan is in the making. The co-founder dropped the news during an As Me Anything (AMA) session through Twitter. 

“During the AMA marathon, Sunny announced that the VeChain Foundation Steering Committee decided to conduct a VET buyback plan up to $25 million USD over the next twelve months! The buyback will be used to incentivize the ecosystem builders for long term success.”

One VeChain token (VET) is worth just under $0.01 at the time of writing. The price could see a rise because of this buyback though. Last week saw an even bigger announcement surface for VeChain which saw the price make 30 percent gains.

Walmart has announced that they will be using VeChain in China which saw the VET token’s value increase significantly.

Typically, buybacks will show that a specific coin/token is making a comeback or performing well enough that the firm is willing to invest more in itself. Holders of VET tokens won’t exactly see an influx of $25 million prompting some random bull run and increasing FOMO amongst investors.

VeChain says that they are going to be using this buyback as a way to give builders and developers an incentive. If all goes to plan, VeChain could develop some killer applications. For price jumps in the future, working products will be the best triggers.

“Buybacks seem to be en vogue right now. Several other foundations have announced plans to buy a portion of their tokens off the open market. The TRON foundation said that they will buy back $20 million of TRX to support the community of builders and add stability to the market.”

In a similar sense, the developers on EOS’ Block.one recently told the community that they’d be attempted a ten percent buyback of its own stock. The buybacks could maybe suggest that these blockchain firms are confident that new money will soon be rolling into the cryptocurrency markets.