Buyback waves are shaking the crypto market, and Pump.Fun is one of the hottest names in recent months and has officially joined the trend.
With a price rise of 15% over the last 24 hours and a $18 million transfer to buyback addresses, Pump has attracted attention from investors. But does this rally reflect a real recovery momentum, or a temporary psychological response before the bubble burst?
Is Pump.fun trying to build a real utility for that token?
Following the recent successful ICO, Pump.Fun was More and morecrutinased by Crypto Community. Many believe that the project is over-inflated the $4 billion valuation. This concern stems from the lack of pump token utility, governance mechanisms, or revenue sharing capabilities within its ecosystem.
However, recent chain data shows that Pump.Fun has transferred $18 million to its dedicated repurchase wallet.
According to Embercn, the platform used revenue from trading fees to accumulate and buy back 3.04 billion pump tokens. The move quickly sparked a positive market response, pushing the price of the pump up by more than 15%.
At the time of writing, Pump had grown 12% over the past 24 hours, trading hands at $0.00656.
Buyback is a widely used financial strategy in traditional and crypto markets, reducing distribution supply and thereby causing upward price pressure. In projects like Pump.Fun, buybacks also serve as a powerful marketing signal, helping to boost the confidence of short-term investors.
However, there are still questions surrounding this project’s buyback move.
“PumpFun sold tokens for $0.004 a few days ago and is currently buying back the same tokens for $0.006 with the same money. Cryptocurrency is not a serious industry,” commented X User.
Pump.Fun is not the only project to jump to the buyback bandwagon. Other platforms like FET, Aave, IOST and Polyhedra (ZKJ) have also recently announced plans to buy back tokens, committing tens of millions of dollars.
However, sudden price increases and key capital deployments are not necessarily equivalent to strengthening inherent value. Without solid technology fundamentals and clear benefits for token holders, price increases driven by buybacks could lead to artificial gatherings vulnerable to sharp fixes if market sentiment changes.
Plus, the pump. Fun works primarily within meme coins and pre-sales segments known for their high speculation and limited transparency.
In conclusion, buybacks can be an effective short-term tool, but additional values can quickly evaporate without a long-term development roadmap and real-world utilities.
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