Sky’s $75M Token Buyback Sees 8% Gain

Crypto protocol Sky has spent $75 million in the past six months on a plan to buy back its token, which has boosted its price by 8% since February.

Sky, which rebranded from Maker in August 2024, said on Monday that in August it used 5.5 million of its platform’s stablecoin, USDS (USDS), to buy back 73 million Sky (SKY) tokens.

It added that it brought its total buyback spend to 75 million USDS since starting the plan, which it began in late February.

Buybacks are a popular mechanism crypto projects use to boost token prices as they remove tokens from circulation, restricting supply and theoretically making them more valuable.

SKY up 8% since buyback started

SKY’s buyback kicked off on Feb. 24, with the platform then spending $4.28 million that month on its program, according to data from its own dashboard.

At the time, SKY was trading just above 6.3 cents and has since gained 8.1% to now trade at just over 6.85 cents, CoinGecko shows.

Sky’s token buyback activity per month in US dollars, its largest month for buybacks was March, with $18.31 million spent. Source: Sky

SKY hit a high of 9.6 cents in late July, nearing its all-time peak of just over 10 cents in December. It then slid alongside the wider market from late July but failed to follow a wider recovery seen in mid-August.

In comparison, the tokens of similar platforms Uniswap (UNI) and Aave (AAVE) have respectively gained 6% and 25.8% since Sky started its buyback, with both seeing recoveries in mid-August.

World Liberty Financial, Pump.fun join buyback plans

The Trumps’ crypto platform, World Liberty Financial, also pitched a token buyback and burn program to its community on Monday.

The project proposed using all of its protocol fees to buy back and permanently destroy its self-titled World Liberty Financial (WLFI) token, which has dropped in value amid its debut launch on secondary exchanges.

WLFI has dropped over 16% to 23 cents since it started trading nearly 18 hours ago, but its earliest investors who bought the token at 1.5 cents would still see an over 1,400% gain.

In mid-July, the memecoin creation platform Pump.fun also initiated a token buyback scheme for its token, Pump.fun (PUMP), using its revenue, which it has spent $66.5 million on as of Tuesday.

Its buyback plan has so far seemed to work, as it’s gained nearly 30% over the past month and is up nearly 70% from its all-time low on July 29, per CoinGecko.

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