Pump.fun’s Token Buybacks
Pump.fun has invested over $62.6 million in repurchasing its native token, PUMP, as per information from Dune Analytics. These buybacks have absorbed more than 16.5 billion tokens at an average price of $0.003785. This initiative is aimed at stabilizing price movements and alleviating sell pressure.
Buyback Strategy
The buyback approach utilizes revenue generated from the platform, mainly fees collected from users launching memecoins, to conduct daily token repurchases. Data from Dune Analytics indicates that daily buybacks have consistently fluctuated between $1.3 million and $2.3 million over the past week.
Revenue Insights
Since its inception, Pump.fun has generated more than $775 million in revenue, according to DefiLlama. A significant revenue decline was noted from July 28 to August 3, during which Pump.fun recorded only $1.72 million in weekly revenue, marking its lowest point since March 2024.
PUMP Token Performance
In the meantime, the buyback initiative seems to be effective. PUMP has appreciated by over 12% in the past month and approximately 9% in the last week. The token is currently priced at $0.003522, reflecting a 54% increase from its low of $0.002282 in August.
User Participation Growth
On-chain data reflects a healthy increase in user engagement. The number of unique PUMP holders has steadily risen to over 70,800, with smaller wallets contributing to this growth. This uptick occurs as the Pump.fun platform faces challenges in maintaining its lead in the Solana memecoin launchpad rankings. On July 7, a newly established Solana platform named LetsBonk claimed the top revenue spot for 24 hours, surpassing Pump.fun. According to the Solana decentralized exchange (DEX) aggregator Jupiter, LetsBonk’s dominance persisted throughout July, as it gained more market share than Pump.fun on multiple occasions. Nonetheless, Jupiter’s data indicates that Pump.fun has regained the No. 1 position, holding a 73% market share and achieving $4.5 billion in trading volume over the last seven days. In contrast, LetsBonk’s market share has fallen below 9%, with trading volume at $543 million.
Legal Challenges Ahead
While Pump.fun continues to gain momentum, it is now confronted with significant legal issues. A class-action lawsuit filed on January 30 alleges that the platform employed “guerrilla marketing” tactics to create artificial hype and urgency surrounding highly volatile tokens. The case was amended on July 23, with plaintiffs characterizing Pump.fun as an “unlicensed casino.” The revised filing likens the platform’s structure to a “rigged slot machine,” claiming that early participants profit by selling tokens to later entrants. The lawsuit estimates total investor losses to be around $5.5 billion.
