The Solana ecosystem meme coin issuance platform Pump.fun has been very active recently, seemingly starting to utilize transaction fee revenue for large-scale buybacks of its own token PUMP. In less than a week, it has already repurchased nearly 3 billion PUMP tokens, drawing market attention.
Solscan data shows that Pump.fun transferred 187,770 SOL (approximately $31.3 million) into a buyback-specific wallet earlier today (16th). According to Lookonchain statistics, of this amount, 118,351 SOL (approximately $19.3 million) has already been used to repurchase 2.99 billion PUMP, with an average price of $0.0064.
In fact, there were earlier reports that Pump.fun is considering allocating part of its platform revenue to reward token holders. Blockchain research firm Delphi Digital estimates that if Pump.fun injects 25% of its transaction fee revenue into PUMP buybacks, it would equate to bringing in $369,000 daily, amounting to an annualized $134.6 million in buy orders for PUMP.
After the buyback news broke, the price of PUMP surged 17% to $0.0067, significantly higher than the public sale price of $0.004.
PUMP's public sale last weekend set an amazing record, selling out in just 12 minutes, successfully raising $500 million, with a fully diluted valuation (FDV) reaching $4 billion at that time. As of the time of writing, PUMP's market capitalization is approximately $2.3 billion, and the FDV has reached $6.5 billion.
Pump.fun's token sales and buyback actions are also seen as a response to the intensifying competition among meme coin issuance platforms. Competitor LetsBonk has recently risen strongly, surpassing Solana ecosystem leader Pump.fun in both daily transaction fee revenue and new coin incubation scale, leading to an escalating confrontation between the two parties.
"Is the force of money protecting the market being exposed? Pump.fun has seemingly repurchased nearly 3 billion PUMP in less than a week," this article was first published on (BlockTempo).
