Pump.fun launches emergency buybacks to stabilize PUMP token
Pump.fun spends 118,350 SOL to stabilize PUMP after launch dip
Pump.fun swiftly initiated buybacks to stabilize the price of its newly launched PUMP token, spending 118,350 SOL to repurchase 2.99 billion tokens.
This intervention came just a day after the token debuted, following early price weakness driven by slow trading and profit-taking, reports Cryptopolitan.
On-chain data confirmed that the buyback contributed to a 22% price recovery, lifting PUMP to $0.006. The platform’s reserves, bolstered by a successful presale and ongoing fee collections, provide ample liquidity for continued support. While no token burn has been announced yet, Pump.fun’s SOL balance and preserved capital suggest room for further strategic interventions. Market watchers view the early buybacks as a sign of long-term commitment to stabilizing and maturing the PUMP ecosystem.
Liquidity and volatility challenge PUMP’s growth
Despite recovering from its initial slump, PUMP remains a low-float token with high volatility. Its market capitalization stands at $2.35 billion, but its fully diluted valuation (FDV) sits much higher at $6.65 billion, raising concerns about sustainability. At launch, PUMP dipped 56% due to limited liquidity across Raydium and Meteora pairs, though it has since regained $27.5 million in liquidity.
The token remains in early price discovery, with future listings on centralized exchanges expected to attract more buyers and smooth price action. Nonetheless, skepticism lingers due to the token’s high valuation and unproven long-term utility. Analysts say broader adoption and improved transparency are needed to build investor confidence.
Whales flip long as Pump.fun focuses on utility
Trading data from Hyperliquid shows a shift in sentiment, with nearly 70% of whale positions now long on PUMP after a wave of shorting. This signals renewed optimism as buybacks and liquidity recovery efforts take effect. PUMP’s design aims to reward holders through revenue sharing from the Pump.fun platform and its PumpSwap DEX, mirroring the utility of past tokens like HYPE. The number of whale traders has grown from 75 to 89 since launch, and $2.15 million in short liquidations occurred in just 24 hours.
However, Pump.fun’s daily revenue has declined significantly from its $13 million peak to around $1.3 million, casting doubt on sustainability. With competitors like LetsBonk gaining market share, Pump.fun must innovate and scale fast to maintain momentum.
Recently we wrote that Bybit has launched a token sale for PUMP, a meme coin associated with the Pump.fun platform.
