Pump.fun Defies Critics with 13% Pump After Massive Buyback Shock

• Pump.fun bought back $2.3 million worth of $PUMP tokens in 20 minutes after selling 33% of the total supply for $1.32 billion.

• The $PUMP token lacks real utility and offers no governance rights, but its price jumped 13% following the buyback announcement.

• Market cap reached $2.11 billion, though analysts question whether the gains can last without addressing fundamental utility concerns.

Pump.fun has completed a significant token buyback operation, purchasing approximately $2.3 million worth of $PUMP tokens within a 20-minute window. The move comes as the platform faces mounting pressure following one of Solana’s largest meme coin sales.

The buyback follows a massive token sale that offloaded 33% of $PUMP’s 1 trillion total supply at $0.004 per token. This sale generated $1.32 billion in revenue and established a fully diluted valuation of $5.97 billion for the token.

Company officials funded the buyback using the platform’s fee wallet, signaling a serious commitment to price stabilization. The concentrated timeframe of the repurchase operation suggests an urgent response to market volatility and price fluctuations.

$PUMP Token Faces Utility Concerns

Critics have raised significant questions about $PUMP’s fundamental value proposition. BitMart Research highlighted the token’s lack of practical utility despite recent price gains in premarket trading.

Unlike traditional cryptocurrencies, $PUMP offers no governance rights, revenue sharing, or active platform functionality. The token serves primarily as a branding mechanism for the Pump.fun website, raising concerns about long-term value sustainability.

Industry analyst IncomeSharks expressed skepticism about the token’s future prospects, stating that companies typically sell their own tokens when market interest wanes. The platform has experienced declining market share and reduced activity levels, potentially indicating challenges in maintaining user engagement and consistent token demand.

Market Response Shows Mixed Signals

Despite ongoing criticism, $PUMP demonstrated strong market performance following the buyback announcement. Trading volume increased substantially, with the token posting a 13.11% gain over 24 hours.

The token’s market capitalization reached $2.11 billion, representing a 13.11% increase. However, analysts remain cautious about the sustainability of these gains, noting that buybacks provide temporary relief without addressing underlying utility concerns.

Market experts suggest that while the price surge appears promising, the project must tackle fundamental issues to maintain investor confidence. The token’s ability to generate sustained interest depends on developing real-world applications and use cases beyond brand recognition.

Major cryptocurrency exchange Coinbase continues to support $PUMP trading, potentially driving renewed investor interest despite a 4% decline over the past seven days. The exchange’s backing may provide additional legitimacy and accessibility for retail and institutional traders.

Meanwhile, Bybit has confirmed it will host the public sale of Pump.fun’s PUMP token from July 12 at 14:00 UTC through July 15. The exchange will run the sale on its main global platform, excluding European users due to MiCA regulatory compliance requirements.