Pump.fun, a Solana-based memecoin launchpad, has conducted a $62 million buyback of its native PUMP tokens using platform-generated revenue to stabilize prices and reduce sell pressure. The buyback, led by co-founder Alon Cohen, involved repurchasing over 16.5 billion tokens at an average price of $0.003785, funded by daily revenue ranging from $1.3 million to $2.3 million in recent weeks.
The platform charges approximately 0.5 SOL (around $90) per token launch and takes a percentage of trading fees, generating over $775 million in total revenue since its January 2023 debut. This move resulted in a 54% price increase for PUMP, from an August low of $0.002282 to $0.003522, alongside growth in unique holders to over 70,800 and daily active users averaging 48,000.
Despite market recovery, Pump.fun faces a class-action lawsuit filed in the Southern District of New York, alleging investor losses of $5.5 billion due to aggressive marketing of volatile tokens. The lawsuit compares the platform to an unlicensed casino and seeks damages and potential regulatory restrictions. Competition from rivals like LetsBonk and Uniswap is noted, but Pump.fun has regained 73% market share with $4.5 billion in weekly trading volume.
Cohen stated, The buybacks have contributed to restoring user confidence and regaining market share among Solana launchpads. Analyst Matthew Nay highlighted the unprecedented scale but raised concerns about long-term sustainability.
