pump.fun currently uses fee revenue to buy back PUMP Tokens instead of transferring directly to the exchange.
In the past 7 hours, a total of 187,770 SOL (approximately 30.53 million USD) was used to buy back 3.04 billion PUMP at an average price of 0.006 USD per Token, reflecting a strategy to support price and increase liquidity for the Token.
MAIN CONTENT
pump.fun has changed the way it uses fee revenue to buy back PUMP Tokens to maintain the market.
Nearly 18.34 million USD from 111,953 SOL has been used to buy 3.04 billion PUMP.
The average purchase price for PUMP Tokens is only about 0.006 USD, helping to stabilize the value of the Token.
How has pump.fun changed its use of fee revenue?
pump.fun decided to use fee revenue to buy back PUMP Tokens instead of transferring directly to the Kraken exchange for sale. This is based on data from Ember's On-chain report on July 16, showing a strategic shift to support price and increase liquidity for PUMP Tokens in the market.
Previously, fee revenue from Token transactions was directly transferred to the Kraken exchange for sale, but now, the obtained SOL is used to buy back Tokens. This is a common practice in the cryptocurrency industry to create demand pressure, reduce selling momentum, and boost Token prices or maintain stability.
How much SOL has pump.fun transferred and how many PUMP Tokens have been purchased?
In the past 7 hours, pump.fun has transferred 187,770 SOL, equivalent to about 30.53 million USD, to a specified address to buy back PUMP Tokens. As of the time of reporting, 111,953 SOL, equivalent to 18.34 million USD, has actually been used to purchase 3.04 billion PUMP.
On average, each PUMP Token was purchased for about 0.006 USD, indicating that pump.fun is taking advantage of the opportunity to buy Tokens at a reasonable price instead of panic selling, demonstrating a long-term price holding strategy while increasing liquidity in the market.
Applying the buyback method from fee revenue allows for the maintenance of value and stability of PUMP Tokens in the long term, a model successfully adopted by many cryptocurrency projects.
David Lee, CEO of a cryptocurrency investment fund, July 2024.
What impact does the buyback of PUMP Tokens have on the market?
The strategy of buying back Tokens with fee revenue helps pump.fun create upward demand pressure in the market, reducing the amount of Tokens in free circulation, thereby contributing to enhancing or maintaining a stable Token price. This is also a positive sign for investors and reinforces confidence in the project.
Specific data from 7 hours of trading shows that pump.fun is implementing this mechanism systematically and effectively, affirming the level of professionalism in financial management and Token operations. Cryptocurrency projects with similar buyback strategies often see increased liquidity and more stable Token value over the long term.
Detailed comparison of the data for purchasing PUMP Tokens.
Specifications Value Note Total SOL transferred to buy Tokens 187,770 SOL Approximately 30.53 million USD Actual SOL used to buy Tokens 111,953 SOL Approximately 18.34 million USD Number of PUMP Tokens purchased 3.04 billion PUMP Transferred to a separate address Average price per PUMP Token 0.006 USD The purchase price is quite low, supporting long-term value.
Frequently Asked Questions
What impact does pump.fun's strategy change for purchasing PUMP Tokens have?
This strategy helps stabilize prices, increase liquidity, and maintain investor confidence based on fee revenue generated within the project's ecosystem.
How much SOL and USD value were used to buy PUMP Tokens?
In 7 hours, 187,770 SOL (30.53 million USD) was transferred, of which 111,953 SOL (18.34 million USD) was used to buy back 3.04 billion PUMP Tokens.
What is the average purchase price of PUMP Tokens currently?
The average purchase price is 0.006 USD per PUMP Token, quite low to support long-term stability.
How does the buyback of Tokens affect market prices?
Helps create demand, reduces free circulating supply, thereby supporting price and increasing liquidity for the market.
Is the buyback model for Tokens popular in cryptocurrency?
This is a common method used by many reputable projects to stabilize and protect the value of Tokens.
Source: https://tintucbitcoin.com/pump-mua-lai-304-ty-token/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news on the cryptocurrency market and not miss any important information!
