The price of PUMP rose by 20% after the buyback: The Pump.fun team's first buyback

Today, as shown by Lookonchain on X, the first buyback of PUMP tokens occurred, and the price immediately reacted with a 20% increase.

Although it is still too early to analyze since it has just entered the crypto market, the dynamics mentioned above are undoubtedly quite interesting.

Pumpfun (@pumpdotfun) has prepared 187,770 $SOL ($30.6 million) as commission revenue for the buyback of $PUMP.

So far, the buyback wallet has spent 118,351 $SOL ($19.26 million) to purchase 299 million $PUMP at an average price of $0.0064. https://t.co/P1uqlkfdx6 pic.twitter.com/3chMjzkPsj

— Lookonchain (@lookonchain) July 16, 2025

'`html The issuance of PUMP tokens `'

The PUMP token was released by Pump.fun a few days ago.

It is an ICO (Initial Coin Offering) in every respect, as Pump.fun is a company that issues its own tokens in the crypto market.

Pump.fun is a platform that was just created last year for online issuance of crypto tokens on Solana.

After several months, it has achieved remarkable success, becoming one of the main driving forces behind Solana as a Memecoins blockchain.

Thanks to Pump.fun, the issuance of new tokens has surged, and due to Solana's low costs, it now has millions of users and huge business turnover.

Its DEX PumpSwap now has a TVL close to $200 million, despite having only launched a few months ago.

PUMP token price analysis

The debut of the PUMP token in the crypto market occurred a few days ago, with an initial price of about $0.006.

After an initial peak, it recorded a high of over $0.012 on the same day it launched in the market, and in fact, entered a brief correction phase in the following days.

Two days ago, the lowest point was just over $0.005, meaning it is not far from the initial price.

To be honest, this correction has caused some dissatisfaction among those who bought PUMP tokens in the previous days, leading the company to decide to initiate the first buyback.

The success of the Pump.fun team's first buyback

Buybacks are quite common in the crypto world.

The idea is that market participants who issue tokens can subsequently buy back a portion at market price to alleviate selling pressure.

The buyback of PUMP is somewhat effective, but only slightly so.

In total, nearly 188,000 SOL (over $30 million) has been used to buy back and remove nearly 3 billion PUMP tokens from the market from the revenue earned from transaction fees.

Please note that as of today, the circulating supply of Pump is 354 million tokens, so the buyback is less than 1%.

In addition, with a current market cap of about $3 billion and a daily trading volume of over $1.2 billion, the $30 million SOL used for the buyback is not much.

Additionally, it should be noted that the total supply of PUMP is one trillion tokens, so in the long run, the impact of similar buybacks on the price can be almost negligible unless they are continuous.

The impact of the buyback on the price of PUMP

Yesterday, before the buyback, the price of PUMP reached a daily low of about $0.0053.

With just the announcement of the buyback, the price has risen to $0.0062, only falling back to $0.0068 after the buyback occurred.

Although it has risen by 20% in the past 24 hours, this increase has only slightly brought the price back to its initial level.

Think about it, the price had already risen to $0.0077 just one hour after its market launch.

Therefore, for many who purchased tokens in the first two days of its market entry, this first buyback may still be a disappointment.

Furthermore, unless the quantity of such buybacks increases in the future, it is reasonable to expect their impact on token market prices may also be relatively small.

The company's goals

In fact, the company's goal in its ICO was to raise up to $1 billion from the market through the issuance of tokens.

Given the current total market cap of about $2.3 billion, the goals of Pump.fun seem somewhat overly optimistic.

Moreover, since the vast majority of created tokens have not yet been distributed in the market, if they decide to sell them in the future for more cash, it could likely lead to a significant drop in price.

So far, about $600 million has been raised, but considering that 15% of the total supply was sold in just 12 minutes, it is not surprising that there was a significant price correction afterwards.

Now it is necessary to understand when other buybacks will take place, especially how much money will be used for token buybacks in the market.