At the heart of FuFuToken's ecosystem lies a sophisticated AI trading bot. Engineered by Futoshi Fufumoto, the trading bot operates on proprietary algorithms, executing daily trades to bolster the token's underlying utility.
The bot's functionality extends beyond mere profit generation, as it actively contributes to the buyback and burn mechanism, ensuring a dynamic and responsive tokenomics model. How does it work? Algorithmic Trading Mechanics of Fufu Token Similar to market-making algorithms, the Fufu Token algorithm strategically places buy orders below the current price and sell orders above the current price, factoring in taxes and Ethereum transaction fees. By executing buy orders at lower prices and sell orders at higher prices, the Fufu algorithm generates a profit.
However, what sets Fufu apart is that all the profits generated by the algorithm are directed toward buying back $FUFU tokens and then burning the tokens. In essence, the algorithm doesn't accumulate profits for the project; instead, it actively deflates the circulating supply of Fufu tokens. This deliberate burning mechanism is designed to benefit token holders by reducing the token supply. As the supply decreases, the value of each $FUFU token increases, providing a direct advantage to those holding the token.