Pump.fun Spends $30M in SOL to Buy Back PUMP Token, Price Jumps 20%

Sean Williams
pump.fun

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Key Takeaways:

  • Pump.fun repurchased 2.99B PUMP tokens using $30M in SOL from platform revenues, temporarily boosting the token’s price.
  • The buyback follows a 57% crash post-ICO, raising concerns over PUMP’s lack of real-world utility.
  • Platform activity is declining, with DEX volume sharply down and legal issues clouding Pump.fun’s long-term outlook.

Analytical platform Lookonchain has revealed that Pump.fun, the no-code meme coin launcher, has resumed its repurchase program, deploying 187,770 SOL ($30.6 million) to buy back its native PUMP token. This bold move follows a dramatic post-ICO price correction and appears to be an attempt to restore investor confidence after a steep selloff.

Pump.fun realized these funds from its platform fee revenues, which have exceeded $700 million, thanks to its meteoric rise since launch. The protocol had previously been hailed as the fastest-growing crypto platform, reaching $100 million in revenue within just 217 days.

Buyback Sparks PUMP Token Rally

So far, 118,351 SOL (approximately $19.26 million) has been spent to repurchase 2.99 billion PUMP tokens, averaging $0.0064 per token — notably higher than its initial coin offering (ICO) price of $0.004.

The buyback triggered a 20% price surge, lifting PUMP to a 24-hour high of $0.00068, before slightly correcting to $0.00066, still up nearly 10% on the day. This effort came shortly after a Coinbase listing announcement that briefly restored momentum following a major post-ICO dip.

PUMP’s Rapid Rise and Fall After ICO

Despite raising $500 million in 12 minutes during its July 12 ICO — where 33% of PUMP’s supply was sold to investors — the token struggled to maintain momentum. PUMP peaked at $0.012 before crashing 57% to $0.0051 within just two days.

Also Read: Pump.fun’s PUMP Token Launch Raises $500M, Hits $5.6B FDV with $34M Volume in 3 Hours

Critics argue that the token’s lack of utility — no governance, no staking, and no revenue-sharing features — could prevent any sustainable rally. Many see the recent price action as artificially inflated and potentially short-lived.

Trading Volume and Platform Activity on the Decline

Adding to the bearish sentiment is a noticeable decline in Pump.fun’s DEX trading activity. From a high of $11.62 billion in January, volume has shrunk to $3.65 billion in June and $885.61 million so far in July. Ongoing legal challenges facing the project may be further dampening user confidence and platform usage.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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