Pump.fun didn’t waste any time supporting its new token. Just one day after PUMP started trading, the platform jumped in to stop the price from falling too far.
The team behind Pump.fun carried out a buyback using SOL, helping PUMP bounce back to $0.006. This move gave the token a 22% boost in just 24 hours, after it had been struggling with slow trading.
In total, Pump.fun used 118,350 SOL to buy around 2.99 billion PUMP tokens, which they’re now holding in a separate wallet.
Relying on Reserves
Pump.fun now has plenty of SOL to work with, thanks to the fast sell-out of its PUMP token presale. The platform also kept some of the SOL it earned from fees, since it hasn’t been selling much SOL recently. These funds could be used in the future to buy more PUMP tokens and help support the price.
So far, Pump.fun hasn’t said anything about burning tokens, and it’s still unclear how exactly they plan to use their PUMP reserves. But the recent bounce in SOL’s price to $164.02 has given the platform even more financial strength to use its reserves if needed.
The long-term goal for PUMP is to share some of Pump.fun’s profits with token holders, instead of following the usual path of airdrop tokens that quickly lose value. The platform began buying back tokens shortly after early whales sold off their holdings and some traders tried to short the token, expecting a price crash.
PUMP Faces Ongoing Scrutiny
Even without the recent buybacks, the PUMP token isn’t fully unlocked yet. Right now, it has a market cap of $2.35 billion, and if all tokens were released, its total value would be around $6.65 billion.
But many people are still unsure about PUMP. It has a high estimated value, but the actual trading activity is still limited. When it first launched, the token dropped by 56%, partly because it relied on low-liquidity trading pairs on Raydium and Meteora.
Since then, PUMP has made a bit of a comeback. Liquidity on Raydium rose to about $27.5 million. Still, the token is in its early “price discovery” stage, meaning the market is still figuring out what it’s really worth. Some believe PUMP could become more stable once it’s listed on more centralized exchanges.