PUMP Token Skyrockets Following Pump.fun’s First-Ever Buyback Move

Pump.fun's bold buyback play sends PUMP token into recovery mode—because nothing says 'trust us' like artificially propping up your own asset.

Market mechanics or market manipulation? The memecoin platform's first-ever token repurchase sparks a rally, leaving traders to wonder if this is genius or just another DeFi gimmick.

Active traders pile in as PUMP defies the broader market slump. Because when has chasing buyback-fueled pumps ever gone wrong? *Cough* corporate stock maneuvers *cough*.

PUMP remains a low-float token

Even without the buybacks, the PUMP token is not fully unlocked. The token reached a market capitalization of $2.35B, with a fully diluted value of $6.65B. 

PUMP is still viewed with skepticism, as it still has a high notional valuation in a low-liquidity market. The initial low liquidity and reliance on Raydium and Meteora pairs led to a 56% dip following the token launch. 

Later, PUMP recovered to $27.5M liquidity on its Raydium pairs. The token is still in its early price discovery stage, and some expect PUMP to grow its liquidity after launching more centralized pairs. 

PUMP traders return to long positions

After the initial wave of whales shorting PUMP, Hyperliquid’s statistics show a return to long positions. Nearly 70% of whale positions are long, suggesting a price recovery is expected. 

The token is still seen as reliable, despite mentions of potential insider whales. PUMP aims to repeat the utility of HYPE tokens, by sharing the revenues of Pump.fun and the PumpSwap DEX. 

A total of 89 whales took up PUMP positions on Hyperliquid, up from 75 on the first day of trading. PUMP saw $2.15M in short liquidations over the past 24 hours, trading against the initial wave of bearish whales.

The utility of PUMP will also be questioned in the coming days, as overall Pump.fun revenues have fallen. The meme platform is also shifting attention from its top meme assets to PUMP. During peak meme activity, the platform generated above $13M in daily fees. Currently, the fees reach $1.34M, with the occasional dip under $1M daily. Pump.fun is also outcompeted by LetsBonk, currently drawing in the bulk of meme activity.

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