Reviews of BitDAO's $100 million token buyback plan are mixed.

The leading cryptocurrency, Bitcoin (BTC), was easing a little bit into the morning Asian trading session, although it was still up 0.6% over the previous 24 hours. The second-largest cryptocurrency overall, Ether (ETH), which is the native currency of the Ethereum network, increased 1.4%.

Technology platform markets are in bleakness as the crypto industry recuperates from Sam Bankman-FTX Fried's exchange's shocking collapse earlier this year. At the same time, the Federal Reserve, the Bank of Japan, and other central banks are continuing to tighten monetary conditions despite mounting evidence that the U.S. economy may enter a downturn next year.

“Bitcoins rally is somewhat unimpressive as crypto traders continue to remain in wait-and-see mode over what will be the next big crypto domino to fall or if we get any clearer guidance over the regulatory front,” Senior marketing expert Edward Moya from the foreign currency firm Oanda wrote on Tuesday.

Arca Funds' chief investment manager, Jeff Dorman, stated in his email this week that

“While I do think the bottom is in, I don't know what sends us higher.”

Growing rumors suggest that the largest cryptocurrencies, primarily bitcoins and ether, may profit from the market slump as investors move into fortified lines.

“We expect digital asset selection will transition towards higher quality names like bitcoin and ether based on factors like sustainable tokenomics, the maturity of respective ecosystems and relative market liquidity,”

David Duong, the institutional head of research at Coinbase, issued a study on Tuesday.

Concerns are raised by BitDAO's proposal to purchase back $100 million in tokens.

Members of the BitDAO community have posited that the group's Target Daily Purchase Amount (TDPA) be set at 2 million USDT each day for 50 days beginning on January 1, 2023. BitDAO is a decentralized autonomous organization (DAO) that is centered on promoting implementation of its native BIT token eco - system.

The transaction results in a 100 million USDT entire price of BIT. According to technical papers, BitDAO is designed as an open system for suggestions that are put to BIT token owners' votes and is independent of chains and initiatives.

The suggestion suggests giving BIT-related items high priority and giving swaps, loans, and yield approaches a low rating for allocating cash for BitDAO.

Today, the DAO's treasury has 300 million USDT and USD Coin (USDC), as well as 270,000 ether (ETH), worth about $345 million, which should be enough to fund BIT product development for at least five years.

Representatives of the BitDAO community claimed that the collective's first plan was to increase its treasury by direct investments, the development of autonomous organizations and sub-DAOs, and investment opportunities.

The suggestion said that the priorities for Bit should be as follows, but that strategy only had a “questionable impact” on BIT's ability to provide results. The suggestion called for high priority on “core products” tied to BitDAO instead, saying that “the most performant DAOs (Lido, Aave, Uni) have been focused on underlying core products that have big addressable markets and durability.”

The future Ethereum layer 2 network Mantle is one such fundamental product, according to the plan. One of BitDAO's major investors, Bybit, bootstrapped the early development of Mantle. A next stage will involve a DAO application and budgeting cycles for increased infrastructure and go-to-market efforts.

Furthermore, due to the major systemic risk in the cryptocurrency market, the difficulty in determining fair pricing, and slippage for altcoins, the suggestion cautioned against engaging in yield methods. Additionally mentioned as causes for caution are the risks related to capital mobilization and liquidity problems while unwinding investments.

As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

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