Pump.fun Launches $16M Buyback to Rescue PUMP Token After 75% Crash
Pump.fun has initiated a major recovery effort by using $16 million in SOL to buy back 3.04 billion PUMP tokens, following a 75% price drop after its $500M presale. The platform has committed $30.6 million in fee revenue to support the token, with $538K in daily buybacks projected—totaling $196.6M annually.
The crash was largely triggered by whale sell-offs, with 340 wallets controlling over 60% of presale tokens. Several large investors quickly cashed out for substantial profits post-launch.
While the buyback aims to restore confidence, analysts warn it may lose effectiveness if token prices rise. At current levels, PUMP’s valuation is lower than competitors like Jupiter and Raydium.
Pump.fun also faces stiff competition from LetsBonk, which shows stronger platform metrics, alongside declining trading volume—down 75% since January.
