24/7 Cryptocurrency News

Pump.Fun Begins Major Buyback, Will PUMP Price Skyrocket?

Pump.fun buys back $2.3M worth of $PUMP tokens, boosting price by 13%, but lacks utility and faces volatility risks.
Pump.Fun Begins Major Buyback, Will PUMP Price Skyrocket?

Highlights

  • Pump.fun repurchased $2.3M in $PUMP tokens to stabilize the price.
  • $PUMP's FDV stands at $5.97B after raising $1.32B in meme coin sale.
  • Critics warn $PUMP could face volatility due to no governance or active role.

Pump.fun has initiated a buyback of its $PUMP token, purchasing approximately $2.3 million worth of tokens in the past 20 minutes.

Advertisement

Pump.fun Buyback Details and Purpose

The move by Pump.fun to repurchase tokens of its $PUMP coin comes after one of the largest sales of meme coins on Solana, which sold 33% of the 1 trillion total supply of its token at $0.004 per token. The $PUMP sale generated $1.32 billion and pegged the fully-diluted valuation (FDV) of the token at $5.97 billion.

However, according to an X post, the project used its fee wallet to fund the buyback wallet, which was seen as a serious intention to stabilize the price of the token.

The buyback, which took place in a narrow 20-minute time interval, can be interpreted as an attempt to adjust to the market situation and fluctuations in the token price. Nevertheless, even with the buyback, the $PUMP token has been criticized from the challenges of its non-utility and possibility to become volatile in the long-run affecting the price thereof.

Advertisement

Criticism of the $PUMP Token

The recent buyback comes amid growing skepticism surrounding the $PUMP token’s fundamental value. A report by BitMart Research points out the token’s lack of real utility despite the $PUMP price rising premarket.

In contrast to other cryptocurrencies, $PUMP does not grant governance rights, party rights with regard to revenue, nor does it have an active role on the platform, other than to market the brand name of the Pump.fun site which has cast some doubt on its capacity to hold its value.

Source: Dune

The sale of Pump.fun has had a mixed reaction. Despite the success of the sale, other industry players, such as IncomeSharks, have also had their doubts concerning the possible future of the token. IncomeSharks said,

“It means something bad when they start selling their own token as no one is interested in it anymore.”

In addition, although Pump.fun had experienced success earlier, it has been losing its market share and activity, which may indicate difficulties in sustaining its user base and ensuring regular demand of the token.

Advertisement

$PUMP Price Soars 13% Despite Backlash

Following the buyback, the $PUMP token saw a significant increase in trading volume, with a 13.11% rise in the past 24 hours. The token’s market cap now stands at $2.11 billion, up by 13.11%. Although these numbers show promising trends, the long-term sustainability of the token is questionable.

Analysts have noted that although buybacks can provide temporary relief, they would not solve the concerns of utility and interest of the market.

This rise in price may be short-lived and the project will have to address its underlying concerns to retain investor confidence. However, with top crypto exchange like Coinbase supporting $PUMP token, the price may continue to see renewed interest despite the 4% decline in the last 7 days.

Share
Kelvin Munene Murithi

Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Ethena Labs Secures Fresh Funding From ArkStream Capital, ENA Price Spikes

Ethena Labs has secured fresh funding from ArkStream Capital as it expands its ecosystem in…

September 6, 2025
  • 24/7 Cryptocurrency News

SEC Forms International Task Force to Crack Down on Pump-and-Dump Schemes

The U.S. Securities and Exchange Commission has launched a task force designed to tackle cross-border…

September 6, 2025
  • 24/7 Cryptocurrency News

Justin Sun Pledges $20M Buy Following WLFI Wallet Freeze

Justin Sun responded to World Liberty Financial freezing his wallet by promising to purchase $20…

September 6, 2025
  • 24/7 Cryptocurrency News

Expert Blames ‘Secret Committee’ for Rejecting MSTR Stock Inclusion to S&P 500

Michael Saylor's Strategy (NASDAQ: MSTR) missed the inclusion in the S&P 500 index on Friday,…

September 6, 2025
  • 24/7 Cryptocurrency News

MARA Bitcoin Treasury Nears $6 Billion, Trails Only Strategy in Public Rankings

MARA announced that it now holds $5.9 billion worth of Bitcoin. This cements its position…

September 6, 2025
  • 24/7 Cryptocurrency News

Senate Banking Committee Releases Updated Draft Crypto Market Structure Bill

The U.S. Senate Banking Committee has released an updated version of the draft Crypto Market…

September 6, 2025