In the fast-paced world of crypto, token buybacks and burns are often hyped as surefire ways to pump prices. But as investor Kyle (@0xkyle__) pointed out in a recent tweet, it's not just about the act itself—it's the why and how that truly matter. His post sparked a lively discussion on X, highlighting case studies like Rollbit and Hyperliquid. If you're into meme tokens or broader blockchain projects, understanding these nuances can help you spot the real gems from the duds.

The Core Insight: Beyond the Burn

Kyle's tweet breaks it down simply: buybacks don't inherently drive value. What counts are:

1. Durability: Is the buyback sustainable over time, backed by ongoing revenue or a solid business model?
2. Intention: Is the team genuinely committed to long-term growth, or is it a short-term gimmick to hype the token?
3. Execution: How is the buyback carried out? Transparent, efficient, and aligned with community interests?

He uses Rollbit as "case study 1," noting they've burned 60% of their supply, yet the price hasn't budged upward. Let's unpack that.

Rollbit's Burn: A Cautionary Tale

Rollbit, a popular crypto casino platform, has been aggressively burning its RLB token since restructuring its tokenomics in 2023. By July 2025, they hit a milestone: 60% of the original 5 billion supply burned, leaving less than 2 billion RLB in circulation. This was achieved through consistent buy-and-burn mechanisms tied to platform revenue.

Initially, the announcement of daily burns in August 2023 sent RLB soaring over 60% in a day, peaking around $0.26 later that year. But fast-forward to August 2025, and RLB hovers around $0.06, according to data from CoinGecko. Why the disconnect?

• Lack of Durability: While burns continue, Rollbit's revenue has fluctuated with the broader crypto market. Without explosive growth in user adoption or new features, the burns haven't translated to sustained demand.
• Questionable Intention: Some critics point to insiders potentially selling into buybacks, diluting the impact. As one reply to Kyle's tweet noted, "Insiders selling into every buyback is the reason."
• Execution Flaws: Burns reduce supply, but if demand doesn't keep pace—due to competition from other gambling platforms or shifting market trends—the price stagnates.

This mirrors issues in many meme tokens, where hyped burns (think Shiba Inu or other dog-themed coins) create short-term buzz but fizzle without real utility or community engagement.

Hyperliquid: The Flip Side of Success

Replies to Kyle's tweet quickly brought up Hyperliquid as a counterexample. This Layer-1 network for perpetual futures trading has turned heads with its buyback strategy. Through the Hyperliquid Autonomous Fund (AF), they've repurchased HYPE tokens aggressively, hitting $1 billion in buybacks by mid-2025, per DL News.

What's different here?

• Durability: Hyperliquid boasts insane revenue—on pace for $10 million daily with 97% net margins, as reported by Blockchain News. This funds ongoing buybacks without straining the ecosystem.
• Clear Intention: The team focuses on product excellence, capturing 35% of blockchain revenue and enabling community deployments via HIP-3. It's not just about the token; it's about building a thriving platform.
• Flawless Execution: Buybacks reduce supply while boosting liquidity and value, leading to a 40% price surge in recent months. As one X user put it, "buyback strategy showed real power of hyperliquid."

For meme token enthusiasts, Hyperliquid shows how tying buybacks to genuine utility (like trading fees) can create a virtuous cycle—something rare in pure meme plays but increasingly adopted in hybrid projects.

What This Means for Meme Tokens

Meme tokens thrive on virality, but buybacks are becoming a common tool to add "tokenomics" flair. Projects like those on Solana or Pump.fun often tout burns to attract holders. However, Kyle's thread reminds us: without durability (e.g., revenue from NFTs or games), intention (transparent teams), and execution (smart contracts that actually deliver), it's just empty math.

Take notes from successes like Hyperliquid and avoid Rollbit pitfalls. Always dig into the "why" behind the burn—your portfolio will thank you.

If you're tracking meme token trends, check out more insights on Meme Insider. What's your take on buybacks? Drop a comment below!