Here is why World Mobile is buying back WMT tokens
Here is why World Mobile is buying back WMT tokens
Followers of World Mobile on X (formerly Twitter) may have noticed the frequent announcements of the company’s buybacks of its WMT tokens. The first of these buybacks took place on May 29, 2023. The latest buyback occurred on July 18, setting a new record with a total of 29,707 WMT purchased. This brings the overall buyback balance to 1,170,791 WMT.
The total supply of World Mobile Tokens (WMT) is 2 billion tokens. This is the maximum supply that will ever be created for the cryptocurrency . But what motivates this strategy exactly?
What or Who is World Mobile?
But before we continue, it’s important to know what World Mobile actually is. The company was founded in 2018 by Micky Watkins, who serves as the CEO of the company. Micky Watkins is an entrepreneur with a background in telecommunications and blockchain technology.
Not surprising that the telecommunications company leverages blockchain technology to create a decentralized mobile network. The company’s primary goal is to provide affordable and reliable internet connectivity to underserved and unconnected communities around the world, initially targeting areas in Africa, Asia, and the Americas.
World Mobile operates a decentralized mobile network where individuals and businesses can own and operate nodes. These nodes provide network services to local communities, incentivized by the World Mobile Token (WMT). It is used for transactions within the network, rewarding node operators, and paying for services like data usage and calls. The token plays a crucial role in maintaining the network’s security and incentivizing participation.
This decentralized approach reduces the need for traditional telecom infrastructure and lowers operational costs.
Note also that World Mobile embraces sustainability and inclusivity. By using solar-powered nodes and other green technologies, the network minimizes its environmental impact. The inclusive business model also ensures that profits and benefits are shared among community members.
Services Provided
- Internet Connectivity
- World Mobile provides affordable internet connectivity to underserved communities, enabling them to access digital services and information.
- Telecommunications Services
- In addition to internet access, World Mobile offers traditional telecom services such as voice calls and messaging.
- Digital Services
- The network supports a range of digital services, including streaming, gaming, and e-commerce, accessible through the World Mobile app.
World Mobile also collaborates with various advisors and partners:
- Input Output Global (IOG)
- IOG, the company behind Cardano, collaborates with World Mobile to integrate blockchain technology and develop scalable solutions for the network.
- Charles Hoskinson
- Charles Hoskinson, the founder of Cardano, is also an advisor to World Mobile.
- Various Blockchain and Telecom Experts
- World Mobile’s advisory board includes experts from the blockchain and telecommunications industries who provide strategic advice and help the company navigate complex technological and regulatory landscapes.
The WMT Token Buyback Program
World Mobile has introduced a token buyback program as a crucial part of its vision for a sustainable sharing economy. Through this initiative, World Mobile’s treasury will purchase World Mobile Tokens (WMT) from the open market using revenue generated since the launch of its commercial services earlier this year.
The tokens acquired through the buyback program will be redistributed as rewards, fostering the growth of World Mobile’s sharing economy while enhancing the stability and utility of the ecosystem. It’s important to note that the total supply of World Mobile Tokens remains fixed, which contributes to overall stability as the network expands.
The first token buyback took place on May 29, 2023, marking the start of the program. These buybacks will occur periodically, with the timing determined by a random function tool to protect the integrity of the World Mobile Chain and prevent predictable patterns that could be exploited.
💰🔁 Buyback Brief | 18/07/2024
— World Mobile Token (@wmtoken) July 18, 2024
📃 Latest Buyback: 29,707 WMT
🥇 A NEW RECORD
🧮 Total Buyback Balance: 1,170,791 WMT
🔍 https://t.co/u3ui6IAA1Dpic.twitter.com/slRRzgGajh
Here are the key points about the World Mobile Token Buyback Program explaining why this buyback actually happens:
1. Supply Control and Price Stability
By reducing the circulating supply of WMT, World Mobile aims to decrease the available tokens in the market, which can help in stabilizing or even increasing the token’s price. A buyback can create a positive perception among investors, suggesting that the organization is confident in its financial health and future prospects.
2. Enhancing Investor Confidence
Buybacks can signal to investors that the company believes the current market price of the token is undervalued. This action can boost investor confidence, encouraging more investment into the token. It demonstrates that the organization is committed to maintaining or increasing the token’s value.
3. Improving Market Liquidity
Reducing the number of tokens in circulation can help in managing liquidity. While this might seem counterintuitive, strategically removing some tokens can help balance the supply-demand dynamics, making the remaining tokens potentially more liquid and stable in value.
4. Supporting Network Growth and Development
Funds used for the buyback can also be reinvested into the network’s development. This includes enhancing the technology, expanding services, and reaching new markets, which can further strengthen the token’s utility and value proposition.
Conclusion: a Long-term Commitment
World Mobile’s buyback of WMT tokens is a strategic move aimed at controlling supply, boosting investor confidence, and stabilizing the market value of the token. This approach reflects the company’s commitment to long-term growth and value enhancement for its token holders.
