Crypto trader Ansem has expressed doubts that token buybacks can create lasting value on their own, citing the stark valuation gap between Hyperliquid’s HYPE and Pump.fun’s PUMP tokens. In a July 17 post on X, Ansem argued that both platforms generate significant revenues and conduct regular token repurchases, yet their market valuations differ drastically.
Hyperliquid, a decentralized perpetuals exchange, brings in roughly $800 million in annualized revenue and boasts a fully diluted valuation (FDV) near $65 billion. Its buyback mechanism, known as the Assistance Fund, directs most protocol fees toward continuous open-market purchases of HYPE, having spent over $1.3 billion by May 2026.
Pump.fun, a meme coin launchpad, generates about $440 million in annualized revenue but its PUMP token trades at an FDV of just $1.4 billion. The platform has also aggressively bought back and burned tokens, spending $233 million to repurchase 62.2 billion PUMP by early January, followed by a large burn. On July 15, Pump.fun distributed 57.279 billion PUMP (worth around $86.5 million) to team and investor wallets, starting a three-year vesting period after a one-year lockup.
Ansem attributes the valuation gap to a “trust premium.” He notes that Hyperliquid built strong community confidence by delivering products consistently and rewarding users based on measurable activity, while Pump.fun has yet to deliver on its long-anticipated user airdrop. Pump.fun co-founder Alon Cohen stated in July 2025 that an airdrop was still planned but not imminent. Ansem believes that improving communication and fulfilling that airdrop could potentially narrow the valuation gap, though this remains his market thesis rather than a prediction.
He also drew a parallel to Bitcoin, which generates no business revenue but commands a massive valuation, exemplifying what he deems an extreme trust premium based on its fixed supply and network rules.
