The price of ICON (ICX), a project building a protocol that allows independent blockchains with different governance protocols to transact with one another, has jumped over 45% this week after announcing a $5 million token buyback program.
In a recent update, ICON revealed a number of updates related to the project’s brand, technology development and partnerships. However, the most notable announcement was that ICON has authorized the foundation to repurchase up to $5 million of currently circulating ICX in an effort to further promote token’s price.
ICON Foundation Council Member Min Kim shared more on the buyback program,
ICX repurchase program is a great way to give back to our community as well as reinforce confidence in our own project. In these times of uncertainty, we want to make it clear that our interests are fully aligned with our community for the long term.
The impact of this news was amplified after Joseph Young, a crypto-influencer, posted a tweet stating that he was optimistic about the project. This ultimately worked to circulate the information in major investor circles, facilitating the recent run-up in price.
Many people asked my thoughts on ICON, biggest Korea-based blockchain project.
What I'm optimistic about:
1. ICON team buying $5 mil worth of their own tokens to show confidence
2. Partnership with the country's largest insurance firm.
Disclaimer: I don't hold any tokens atm.
— Joseph Young (@iamjosephyoung) August 26, 2018
While it’s unclear if the recent 45% surge was related to FOMO or the actual repurchase of tokens, the move is a smart one and mirrors what many major companies do on the capital markets as a sign of faith in future stock returns and the value of their company.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.