ApeX Protocol Launches $12 Million Token Buyback Program for $APEX, Protecting Price by Creating Scarcity

Decentralized derivatives trading platform ApeX Protocol has announced a token buyback program for its native cryptocurrency, $APEX. The initiative is confirmation of the DEX’s long-term commitment to its ecosystem, and a strategic step to instill trust among users and investors by allowing them to benefit from the value it generates.

Initially, ApeX Protocol will allocate $12 million from its past revenues to repurchase the tokens, which will reduce its circulating supply and enhance APEX’s overall value proposition for investors. This one-time allocation is funded by the exchange’s past earnings, with the future funding coming from daily revenues.

ApeX Protocol to Use 50–90% of Daily Revenue for $APEX Buybacks

Apex also announced that starting next Monday, it will use 50% of daily revenue, generated from fees, to repurchase APEX tokens directly from the open market, making the program a key strategy of its token management process. This percentage allocation will gradually increase to 90% of the revenue over time, with the buybacks occurring weekly.

To ensure transparency and user confidence, all APEX bought back by the exchange will be transferred to a publicly viewable and verifiable on-chain address. By gradually decreasing the circulating supply and permanently locking tokens on-chain, Apex aims to enhance the asset’s long-term value.

The protocol emphasized that its buyback program is not merely a financial strategy to support APEX’s market price but an effort to sustain the platform’s stability in the long run, aligning with the broader community sentiment of offering market stability and scarcity over time, positively influencing the token’s appeal to existing and potential investors. The initiative is also designed in such a way that all stakeholders – traders, holders, and the protocol – benefit from APEX’s continuous growth.

The program, alongside the ApeX Protocol’s 4.0 Blueprint and Project Omega, focuses on positioning the decentralized derivatives exchange as a trader-centric, community-oriented platform. It also highlights the platform’s dedication to creating an ecosystem where users are not just participants but stakeholders of its success.

ApeX Protocol reiterated that the future of decentralized finance (DeFi) demands more than advanced technologies, as it necessitates shared ownership, aligned incentives, and complete transparency. The APEX Token Buyback Program serves as the first practical implementation of these values.

Historically, token buybacks have boosted tokenholder value, creating artificial scarcity. Traders need to keep an eye on ApeX Protocol’s daily revenue metrics and weekly activity of the buyback wallet.

Can $APEX Sustain its Price Post-Buyback Hype?

At the time of writing, APEX is trading at $2.27, up 19.86% in the last 24 hours. The token’s 7-day RSI sits at 98.2, “extreme overbought” levels, while the price is 114% above its 30-day SMA at $1.06. Its Fibonacci extensions suggest that the next resistance is near the 23.6% Fib retracement level of $2.71. While short-term momentum favors the bulls, extreme RSI could be followed by price corrections. A 35% drop in the token’s 24-hour trading volume to $195 million hints at potential profit-taking by traders in the near term.

A close above the all-time high of $2.71 could trigger a FOMO-driven rally that could push APEX towards the 161.8% Fib extension of $4.23. If profit-taking accelerates, then it will be key for the token to hold above the 23.6% Fib extension of $2.11.