HashKey Group Announces HSK Buyback Plan Amid Market Volatility

HashKey Group has announced its plan to initiate the first buyback and burn of its platform token, HSK. This move comes after a period of delays and growing investor concerns regarding the transparency and execution of the program. Initially, HashKey had committed to using 20% of its net profits for HSK buybacks and burns, as outlined in the token's whitepaper. However, despite this commitment, no tokens have been repurchased or burned to date.

Community members have expressed frustration over the lack of public records detailing the buyback process. HashKey had previously stated that updates on the buyback program would be provided quarterly, but the HSK token information page still indicates that zero tokens have been repurchased or burned. The whitepaper had detailed the plan to use profits to reduce the HSK supply as a measure to protect its value.

In response to the increasing scrutiny, HashKey Group issued a statement reaffirming its commitment to the buyback plan. The company attributed the delay to its ongoing investments in regulatory compliance and global expansion. HashKey assured investors that buybacks would commence once operations stabilized and promised to provide regular updates through official channels.

HSK has a total supply of 1 billion tokens, with the majority, 65% or 650 million tokens, allocated to ecosystem development. Currently, 155 million of these tokens have been unlocked. The team's allocation is 30% or 300 million tokens, with 16.7 million unlocked. The risk management allocation is 5% or 50 million tokens, which are fully locked. The current tokenomics reveal that no single wallet holds more than 5% of the total supply, indicating an effort toward decentralization. However, the category intended for buybacks and burns shows no activity, highlighting that deflationary measures have yet to be implemented.

The announcement of the buyback plan triggered significant market volatility for HSK. The token's price dropped by 11.92% in the past 24 hours, falling to $0.3930 from an earlier high of $0.4462. Despite the price drop, the 24-hour trading volume surged by 219.06%, reaching $3.21 million. This increase in trading volume suggests heightened investor engagement during the downturn.