In a shocking turn of events, the native token of Solana-based meme coin platform Pump.fun, PUMP, surged nearly 20% on July 16th, reaching a new all-time high after the launch of a large-scale buyback campaign. 📈🚀
After reaching a high of $0.00681, PUMP is currently trading at about $0.0063, up about 14% on the 24-hour timeframe. The rally was driven by news that Pump.fun has begun buying back tokens using platform-generated fee revenue.
According to on-chain data shared by Lookonchain, the platform allocated 187,770 Solana (SOL), worth about $30.6 million, from its fee reserves to fund the buyback. So far, 118,351 SOL, about $19.26 million, has been spent acquiring roughly 2.99 billion PUMP tokens at an average price of $0.0064.
Pumpfun(@pumpdotfun) prepared 187,770 $SOL($30.6M) in fee revenue to buy back $PUMP.
So far, the buyback wallet has spent 118,351 $SOL($19.26M) to buy 2.99B $PUMP at an average price of $0.0064.
— Lookonchain (@lookonchain) July 16, 2025
The buyback appears to be part of an effort by Pump.fun to stabilize its token after a volatile start. Following its public sale, which raised $600 million in just 12 minutes by selling 15% of the token supply, PUMP debuted on major exchanges with a fully diluted valuation of $4 billion. However, due to significant profit-taking by early investors, the token rapidly fell more than 40%. 😱
Market sentiment is now cautiously optimistic as a result of the buyback, which has reignited interest in the token despite its rocky debut. Some analysts continue to question the move’s sustainability, while others interpret it as a show of confidence from the Pump.fun team. 🤔
Critics have pointed to the token’s limited utility, as PUMP offers no governance, staking, or revenue-sharing mechanisms. They argue that without addressing structural flaws, the buyback might only serve to prop up the price. 💸
The buyback launch comes as competition heats up in the memecoin launchpad space. A competitor platform, LetsBonk, recently overtook Pump.fun in terms of daily launchpad volume and token graduation rates. Pump.fun’s own metrics have also declined, with platform volume dropping from $11.6 billion in January to $3.65 billion in June, as per DefiLlama data. 📉
In an effort to regain its dominance, Pump.fun has acquired analytics platform Kolscan and implemented time-weighted average price buyback strategies funded by fee wallets. For now, the market appears to be responding positively to these efforts. 🤑
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2025-07-16 09:27