In the fast-paced world of crypto, especially with meme tokens, strategies like token buybacks often spark heated discussions. Recently, a thread on X (formerly Twitter) caught our attention, where investor Kyle (@0xkyle__) weighed in on a viral video by Vi Lo (@Viliam__) claiming that "buybacks are stupid." Let's break this down and see what it means for meme token enthusiasts and blockchain practitioners.

The Spark: Vi Lo's Take on Buybacks

Vi Lo, known for his abstract and giga-chad vibes in the crypto space, posted a video rant that's garnered over 60,000 views. In it, he argues that token buybacks should be a last resort—something you do only after exhausting every other option to grow your project. He points out that many crypto protocols jump straight into buybacks as soon as they make some money, which he calls a mistake.

For those new to the term, a token buyback is when a project uses its funds to purchase its own tokens from the market. Often, these tokens are then "burned" (permanently removed from circulation), which can reduce supply and potentially drive up the price. It's like a company buying back its shares in traditional finance.

Vi Lo criticizes how these buybacks are executed. Instead of strategically placing bids at sensible price levels or using TWAP (Time-Weighted Average Price—a method to buy assets gradually over time to minimize market impact), projects often bid up the price aggressively. This, he says, leads to paying a "retarded premium" without good reason. His advice? If you're buying back, focus on accumulating as many tokens as possible at the best prices, aligning with a long-term horizon rather than short-term hype.

He emphasizes his own approach: with a 10-year time frame, he'd prioritize other innovations before making buybacks the core of the business. And drawing from experience, having invested $15 million into companies, he notes that people often over-index on buys and burns in the short to medium term.

Kyle's Agreement: Alignment vs. Necessity

Kyle, a first-principled investor at Defiance Capital, quotes Vi Lo's post and adds his two cents. He agrees that buybacks are a simple way to demonstrate "alignment"—meaning the team's interests are synced with token holders, like not dumping tokens on the market. But, he argues, if a project is fundamentally aligned from the start, buybacks aren't strictly necessary.

The real issue, according to Kyle, is trust. In crypto, where rug pulls (when founders suddenly abandon a project and run off with the funds) are all too common, holders push for buybacks as a safeguard. Without them, there's fear the team might "run away with the money." This highlights a broader problem in the space: lack of genuine alignment leads to forced mechanisms like buybacks to build confidence.

Community Reactions and Implications for Meme Tokens

The thread sparked a few replies that echo the sentiment. One user asked if forced buybacks create more short-term hype than long-term alignment, which ties into Vi Lo's point about time horizons. Another simply noted that "trust is the real issue," while a third dropped a watchful eye emoji, perhaps indicating they're keeping an eye on this debate.

For meme tokens, which often rely on community hype and viral momentum, buybacks can be a double-edged sword. On one hand, they signal commitment and can boost prices temporarily, attracting more holders. On the other, if done poorly, they waste resources that could go into real development or marketing. In the meme world, where projects like Dogecoin or newer ones on Solana thrive on fun and speculation, prioritizing long-term strategies over quick buys could separate the winners from the fades.

If you're building or investing in meme tokens, this discussion is a reminder to think beyond the hype. Ask: Is the team truly aligned? Are buybacks being used strategically, or just as a band-aid for trust issues? Tools like TWAP can help execute buys efficiently, but ultimately, genuine innovation drives sustainable value.

Check out the original thread here for the full context, including Vi Lo's video. What do you think— are buybacks overrated, or essential in today's crypto landscape? Share your thoughts in the comments below!