Pump.fun has launched an aggressive buyback of its meme token $PUMP, purchasing approximately $2.3 million worth of tokens in just 20 minutes — pushing the price up by over 13%. However, concerns remain due to the token’s lack of real utility and the risk of long-term volatility.
💰 Why Is Pump.fun Buying Back Its Own Tokens?
The buyback follows one of the largest meme coin sales on the Solana blockchain, where 33% of the total 1 trillion token supply was sold at a price of $0.004 per token. This sale brought in $1.32 billion in revenue and established a fully diluted valuation (FDV) of $5.97 billion for the project.
According to a post on X, Pump.fun used its fee wallet to fund a dedicated buyback wallet — a move interpreted as a serious effort to stabilize the token’s price and respond to market volatility.
The buyback occurred over a tight 20-minute window, signaling a coordinated market intervention. Yet despite the price jump, many observers remain skeptical, citing a lack of actual use cases for the token.
❗ $PUMP Under Fire: Speculative Asset Without Real Function?
Despite the recent price rally, $PUMP continues to draw criticism. A report from BitMart Research points out that the token offers no governance rights, revenue-sharing benefits, or functional role within the Pump.fun platform — serving only as a branding tool.
Compared to other cryptocurrencies, $PUMP is seen as purely speculative, casting doubt on its ability to maintain long-term value.
IncomeSharks commented on the buyback with a hint of sarcasm:
"Is it a bad sign when a project has to buy back its own token because no one else wants it?"
While Pump.fun once dominated the meme coin scene on Solana, it is now losing market share and user activity, which may point to growing challenges in maintaining a strong community and organic demand.
📈 Price Surges 13%, But Caution Lingers
Following the buyback, the token $PUMP surged by 13.11% with significant increases in trading volume. Its current market cap stands at $2.11 billion. However, the big question remains: can a token with little to no utility sustain this momentum?
Analysts warn that buybacks may offer short-term relief, but they don’t solve core issues of value and investor trust.
The recent price jump could prove to be temporary unless the project addresses fundamental concerns. Still, with major platforms like Coinbase showing support for $PUMP, interest may continue to build — even after a 4% decline over the past seven days.
#pump , #memecoin , #pumpfun , #CryptoVolatility , #CryptoTrends
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