Buck Token Launches With 7% Yield—but Can Investors Trust It?
A new crypto token called Buck has launched, offering investors an annual yield of around 7%. The Ethereum-based token is indirectly backed by MicroStrategy’s preferred shares, known as STRC, and is issued by Buck Labs, a firm based in the Cayman Islands. While the project promises high returns, it also carries significant risks, including volatility, regulatory uncertainty, and the financial stability of MicroStrategy itself.
The token, priced at $1 at launch, can be bought through Buck’s website, though its market value will later fluctuate based on supply and demand. U.S. citizens, however, are excluded from purchasing it. The concept behind Buck stems from a proposal by Michael Saylor, who suggested creating financial products tied to the preferred shares of so-called Bitcoin Treasury Companies. These products aim to blend cash and shares into low-volatility, high-yield instruments.
Buck Labs markets the token as part of a transparent savings community, where holders vote on how earnings from STRC are distributed. The security of these earnings relies on STRC’s overcollateralisation in Bitcoin and MicroStrategy’s financial structure. Yet, despite this framework, the risks remain high. Investors face typical crypto dangers—such as extreme price swings, smart contract vulnerabilities, and platform failures—as well as additional structural risks tied to STRC’s stability and Buck Labs’ unproven reputation. MicroStrategy’s own financial health adds another layer of uncertainty. Even if Bitcoin performs well, the company could still face insolvency, directly impacting STRC and, by extension, Buck. Regulatory crackdowns on high-yield crypto products, security breaches in Ethereum’s ecosystem, or shifts in market sentiment could further destabilise the project. For those seeking high dividend yields, buying MicroStrategy’s preferred shares directly might be a more secure alternative—if they have the capital to do so. Unlike established banks offering similar products, Buck Labs lacks a long-standing track record. The token itself holds no direct claim to MicroStrategy’s underlying assets, despite its indirect backing. This structure, combined with the legal ambiguities of operating from the Cayman Islands, raises questions about investor protection and long-term viability.
Buck’s launch presents an opportunity for high yields but comes with substantial risks. The token’s value depends on MicroStrategy’s financial stability, Bitcoin’s market performance, and the untested reliability of Buck Labs. Investors must weigh these factors carefully before participating, as the project’s success hinges on multiple volatile and interconnected elements.
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