HashKey Token Faces Community Scrutiny Over Lack of Buyback and Burn

Community members have raised concerns about the HashKey Token (HSK) for not adhering to the repurchase and burn mechanism outlined in its whitepaper. According to the HSK whitepaper, HashKey Group is committed to a burn mechanism to safeguard the intrinsic value of HSK. The group plans to use 20% of its net profit to repurchase circulating HSK tokens and permanently remove them from circulation. This mechanism is designed to reduce the supply of HSK, potentially increasing its value over time.

The community's concerns stem from the lack of public disclosure regarding the buyback and burn records of HSK. An investigation revealed that the "Buyback/Burn" data on the HashKey Group's HSK page is currently at 0. The HashKey trading platform has stated that the results of the burn will be announced on the 11th day of each quarter. HSK was launched on November 11, 2024, and on April 11th this year, HashKey announced that the HSK token burn plan would be regularly evaluated and disclosed to the public when applicable. However, the community understands that currently, HSK has not undergone any buyback and burn activities.

Some community members speculate that the reason for the lack of buyback and burn for HSK is that HashKey Group did not generate a net profit in the first quarter of 2025, making the absence of buyback a reasonable occurrence. This speculation aligns with the whitepaper's stipulation that buybacks are contingent on the group's net profit. The community's concerns highlight the importance of transparency and adherence to the mechanisms outlined in the whitepaper to maintain trust and confidence in the HSK token.