“OGN is Currently Undervalued,” says the Origin Team as it BuyBack $1.3 Mln Worth of its Tokens
A common phenomenon in the traditional market, buybacks have been gaining traction in the crypto market as well. Popular names like Binance, FTX, DeFi bluechip Yearn, and many others have been doing buybacks for some time now.
Also known as repurchase, buyback involves a corporation purchasing its own shares in the stock market, reducing the number of outstanding shares, and inflating the earnings per share. It often leads to an increase in the value of the stock. Buyback demonstrates that a business has sufficient cash.
The latest crypto project to do so is Origin Protocol, whose aim is to create sharing economy marketplaces.
On Tuesday, Origin co-founder Matthew Liu announced that they would be purchasing $1,304,284 worth of Origin Tokens (OGN) on the open markets over the next week. These tokens will be removed from circulation and sent back to Foundation Reserves.
This purchase will be made from the revenue generated from our recent NFT sales for this token buyback.
“I love the conviction from the Origin team about their future prospects. Would encourage other projects to consider the same as a show of confidence in the value of their tokens,” noted SpartanBlack, a partner at crypto fund The Spartan Group.
The OGN buyback has been made because “our product is currently undervalued,” said the team, adding, the aim is also to reduce the supply.
Launched on Binance in January 2020, the project’s 80 million tokens are currently staked, which further decreases OGN float.
The team, however, is not done with reducing the numbers and will be taking additional measures in the future to manage circulating supply through additional buybacks and holding back tokens that would otherwise be released by Foundation Reserves.
As of writing, OGN is trading at $1.12 with a market cap of about $238 million, down over 67% from its all-time high of $3.35 from two months back, as per CoinGecko.