The native token of Pump.fun, a Solana-based meme coin platform, surged nearly 20% on July 16, briefly hitting a new all-time high following the launch of a major token buyback initiative.
After peaking at $0.00681, PUMP is currently trading around $0.0063, marking a 24-hour gain of approximately 14%. The rally was fueled by news that Pump.fun has started repurchasing tokens using revenue generated from platform fees.
According to on-chain data from Lookonchain, the platform allocated 187,770 SOL (roughly $30.6 million) from its fee reserves to support the buyback program. So far, it has spent 118,351 SOL (about $19.26 million) to acquire approximately 2.99 billion PUMP tokens at an average price of $0.0064.
Pump.fun’s latest buyback initiative appears to be a strategic move to stabilize its native token, PUMP, following a turbulent launch. After raising an impressive $600 million in just 12 minutes during its public sale—by selling 15% of the total token supply—PUMP debuted on major exchanges with a fully diluted valuation of $4 billion. However, the token quickly lost over 40% of its value as early investors rushed to take profits.
The newly launched buyback campaign has sparked renewed interest and cautiously optimistic sentiment in the market. While some view it as a sign of the team’s confidence, others remain skeptical about the long-term sustainability of the move.
Critics have pointed out that PUMP currently lacks core utility features such as governance, staking, or revenue-sharing mechanisms. Without addressing these structural issues, they argue, the buyback may offer only temporary price support.
The initiative also comes amid rising competition in the memecoin launchpad sector. Rival platform LetsBonk has recently surpassed Pump.fun in daily launchpad volume and token graduation metrics. At the same time, Pump.fun’s own performance has waned, with platform volume falling from $11.6 billion in January to $3.65 billion in June, according to DefiLlama.
To reclaim its lead, Pump.fun has acquired blockchain analytics firm Kolscan and introduced a time-weighted average price (TWAP) buyback strategy funded by its fee revenue. So far, the market has responded positively to these moves, even as questions remain about the project’s long-term direction.
