Pump.fun's decision to buy back tokens of its PUMP currency comes after one of the largest meme coin sell-offs in Solana, where 33% of the total supply of 1 trillion tokens was sold at $0.004 per token. The sale of PUMP generated $1.32 billion and set the diluted valuation (DV) of the token at $5.97 billion.

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

The buyback, which took place in a brief 20-minute interval, can be interpreted as an attempt to adapt to the market situation and the fluctuations of the token's price. However, even with the buyback, the PUMP token has been criticized for its lack of utility and its potential long-term volatility, affecting its price.

$PUMP