The memecoin platform Pump.fun recently made headlines with the launch of its PUMP token. This highly popular operation is now moving to the next stage with a buyback procedure already estimated at $20 million.
Pump.fun begins buyback of PUMP token
At the beginning of last week, rumors were circulating about the imminent launch of a PUMP cryptocurrency by the Pump.fun platform. After a few strategic twists and turns, the operation was finally approved on July 9.
The price of the PUMP token quickly rose significantly, driven by the enthusiasm of a community accustomed to the extreme volatility of memecoins. However, other factors seem to have supported this momentum in recent days.
Indeed, certain data available on-chain suggests that the Pump.fun platform is already engaged in a massive buyback of PUMP tokens, using an address identified as “Pump.fun buyback,” following the deposit of 187,770 SOL—estimated at over $31 million—on Tuesday.
According to the X Lookonchain account, this wallet has so far “spent 118,351 SOL ($19.26 million) to buy 2.99 billion PUMP tokens at an average price of $0.0064.” This process was paused a few hours ago.
Estimated buying pressure of $134.6 million per year
As soon as this buyback operation was discovered, the price of the PUMP token rebounded significantly by almost 20%. This brings its price to $0.0065, an increase of more than 60% since its initial purchase price of $0.004.
According to analysts at Delphi Digital, the Pump.fun platform is reportedly starting to share its revenue with PUMP token holders. This is a good way to maintain its upward momentum, especially given the downward volatility often associated with this type of launch. But the goal could well be even greater.
Assuming Pump.fun commits to using 25% of its current revenue from launch and AMM operations, token holders would receive $0.369 million in daily buying pressure on the PUMP token, or $134.6 million per year.
Delphi Digital
The launch of the PUMP token comes at a time of fierce competition in the memecoin market. This is particularly true since the rapid development of the letsBONK.fun launchpad, which now boasts almost identical volumes and whose revenues have surpassed those of Ethereum over a 24-hour period. This is a story to watch closely.
