Today, as shown by Lookonchain on X, the first buyback of the PUMP token occurred, and its price immediately reacted with a +20%.
Although it is still too early to conduct analyses, given that it has just landed on the crypto market, the dynamic just described is nevertheless decidedly interesting.
Pumpfun(@pumpdotfun) has prepared 187,770 $SOL($30.6M) in revenue from fees to buy back $PUMP.
So far, the buyback wallet has spent 118,351 $SOL($19.26M) to buy 2.99B $PUMP at an average price of $0.0064.https://t.co/P1uqlkfdx6 pic.twitter.com/3chMjzkPsj
— Lookonchain (@lookonchain) July 16, 2025
“`html The launch of the token PUMP “`
The token PUMP was launched by Pump.fun just a few days ago.
It was in all respects an ICO (Initial Coin Offering), given that Pump.fun is a company that has issued its own token on the crypto market.
Pump.fun is a platform created just last year for the online launch of crypto tokens on Solana.
Over the months, it has achieved a resounding success, so much so that it is one of the main drivers of Solana’s success as a blockchain for memecoins.
Thanks to Pump.fun, the launches of new tokens have exploded, also due to the low costs of Solana, so much so that it now has millions of users and a huge business turnover.
Its DEX PumpSwap is now approaching 200 million dollars in TVL, despite being launched only a few months ago.
Analysis of the PUMP Token Price
The debut of the token PUMP on the crypto markets occurred a few days ago, at an initial price of about 6 thousandths of a dollar.
After an initial peak that led it to record the maximum price, on the same day of the launch on the markets, above 12 thousandths of a dollar, in reality, in the following days, it entered a brief correction phase.
The lowest point was reached two days ago just above 5 thousandths of a dollar, that is, not much below the initial price.
To tell the truth, this correction has generated a bit of discontent among those who had purchased the PUMP token in the previous days, and so the company decided to initiate the first buyback.
Success of the first buyback by the Pump.fun team
The buyback in the crypto world is quite common.
The idea is that those who issue a token on the market can later withdraw a part of it by buying it at market price to reduce the selling pressure.
The buyback of PUMP worked, from this point of view, but only a little.
In total, almost 188,000 SOL (more than 30 million dollars) from the earnings obtained with the fees were used, with which nearly 3 billion PUMP tokens were repurchased and removed from the market.
Note that as of today the circulating supply of Pump is 354 million tokens, so the buyback was less than 1%.
Furthermore, with a current market capitalization of about three billion dollars, and daily trading volumes exceeding 1.2 billion dollars, the 30 million dollars in SOL used for the buyback are not much.
To this, it should also be added that the total supply of PUMP is one thousand billion tokens, therefore in the long term the impact on the price of similar buybacks could be almost null, unless they are continuous.
The impact of buyback on the price of PUMP
Yesterday, before the buyback, the price of PUMP had reached a daily low of about 5.3 thousandths of a dollar.
Already with the mere announcement of the buyback, it had then risen to 6.2 thousandths, only to return to 6.8 thousandths once the buyback had occurred.
Although it is a +20% in the last 24 hours, this increase has just been able to bring the price back above the initial one, and not by much.
Just think that just one hour after the launch on the markets, it had already risen to 7.7 thousandths of a dollar.
Therefore, it is possible that for many of those who purchased it in the first two days of its presence on the markets, this first buyback was still a disappointment.
Furthermore, unless such buybacks multiply in the future, it is reasonable to expect that they may also have relatively small impacts on the market price of the token in the future.
The objectives of the company
In reality, the company’s goal with its ICO was to raise up to 1 billion dollars from the market with the launch of the token.
Given that the entire current market capitalization is about 2.3 billion, the goal of Pump.fun seems a bit too optimistic.
Furthermore, since the vast majority of the tokens created have not yet been distributed on the market, if they decide to sell them in the future to cash in more, they would most likely cause the price to drop significantly.
For now, approximately 600 million dollars have been collected, but given that 15% of the entire supply was sold in just 12 minutes, it is not surprising that there was a sharp price correction afterwards.
Now it will be necessary to understand when the other buybacks will be carried out, and especially what the amount of the figures used for the repurchase of the tokens on the market will be.
