USTX buyback effect
Would you sell something if you knew that after a week it would be worth more?
This is the question that has been bothering me in the past weeks. The obvious answer would be no, yet some people are selling USTX even if they know that every week the price would rise. Every holder should know by now that every Saturday since March 2022, the team harvests the rewards coming from our stablecoin reserves and uses them to buyback tokens to be used to pay the stake rewards. This has two major effects: the stake rewards are completely sustainable without inflating the token supply and the price of the token rises.
Every epoch. Every week. Every Saturday.
So I keep scratching my head, asking why people sells and the only possible answer is that we’ve not been good enough in explaining the buyback mechanism. So here I am, to try a different approach, a visual one.
In the chart below there are two timeseries of the last quarter USTX price, the blue one is the actual price, the orange one is the price the token would have realized considering only the buyback operations done by the team (sells and buys from users are not accounted).
I think the chart speaks for itself.
USTX was designed to protect the user investments while allowing a consistent growth over time. It has proven multiple times that it is capable of doing exactly that, but we need to let it work.
This market phase is very tough and some people are scared. I cannot give any advice, because I believe that all decisions should be personal, but what I can do is show evidence of what happened so far. I want to remind that since launch USTX is still showing a great performance: +130%.
Comparing with BTC, we just hit ATH at 109SAT, meaning that USTX has consistently outperformed the market since November 2021.
We won 2nd place in the first Tron hackathon and delivered what promised. For the next round we have great plans that won’t disappoint. The team is fully committed and we’ll do anything in our power to make USTX the success it deserves to be.