MakerDAO (MKR) witnessed a strong increase in its price last week. The altcoin has gained more than 20 percent in a short time. This development coincided with the launch of MakerDAO’s token buyback program. However, in the midst of this bullish hedge fund Andreessen Horowitz (a16z) started piling up tokens on Coinbase. It looks like a16z won’t stop emptying its MKR stash.
Investment giant continues MKR sales!
cryptocoin.com As you follow, a16z started carrying MKR to cryptocurrency exchange Coinbase two days ago. He probably made these transfers for sales purposes. My on-chain monitoring platform Lookonchain first reported that a16z has deposited 12,864 MKR, worth approximately $12.6 million. After that, the firm moved another 1,500 MKR to Coinbase. According to Lookonchain a16z , MKR continues its sales. In this context, Lookonchain shared the following:
15 minutes ago, a16z deposited 1,380 MKR ($ 1.52 million) to Coinbase again at the address “0x1279”. Address “0x1279” currently costs 5,520 MKR ($6 million).
a16z deposited 1,380 $MKR ($1.52M) to #Coinbase again via address "0x1279" 15 mins ago.
Address"0x1279" currently holds 5,520 $MKR ($6M).https://t.co/dTDC7kW5K7https://t.co/CvonSqw2i5 pic.twitter.com/9CzUmopZnP
— Lookonchain (@lookonchain) July 22, 2023
Altcoin project token buyback program triggers surge
Last week, the Maker (MKR) token gained a lot of attention in the crypto market. Thus, it registered an impressive 26% rise. This remarkable price action coincided with the launch of a groundbreaking token buyback program by the leading decentralized finance (DeFi) lending platform MakerDAO. As the DeFi ecosystem continues to expand, Maker (MKR) stands out as one of the largest and oldest DeFi lending protocols. It is also gaining popularity as it issues the DAI stablecoin with a market cap of $4.6 billion.
The recent surge in Maker (MKR), the $5.3 billion management token of decentralized finance (DeFi) organization MakerDAO, can be attributed to the implementation of a token buyback program. The team designed the token buyback program, which they describe as the Smart Burn Engine, to remove MKR tokens from the market. The mechanism involves allocating excess DAI from Maker’s excess buffer to purchase MKR tokens from a UniSwap pool. The governance proposal behind this initiative aims to strengthen the value and governance of the token while actively involving MKR holders in voting on key proposals.
According to blockchain data, the lending platform is set to remove approximately $7 million worth of MKR governance tokens from the market next month through this buyback attempt. The total market capitalization of the token is approximately $1 billion. The buyback represents a 0.7% monthly decrease in the token supply. It also potentially increases MKR’s scarcity and value proposition. This strategic move is likely to attract more interest and investment from the crypto community.
