Pump.fun Buys Back 3B PUMP Tokens with Platform Fees

• Pump.fun spends $19M buying back PUMP tokens to defend value.

• PUMP token sells out fast, raising $600M in twelve minutes.

• Pump.fun acquires Kolscan to attract traders with smart money tracking tools.

Pump.fun, a memecoin launchpad built on the Solana blockchain, has surprised the crypto market with a huge buyback of its token. Just days after its public launch, the platform decided to use its fee revenue to buy back nearly three billion PUMP tokens. This step indicates that Pump.fun is interested in maintaining the value of its token and gaining the community back.

Pump.fun Burns $19M on PUMP Buyback

First of all, the on-chain data provided by Solscan demonstrates that Pump.fun sent 187,770 SOL to a buyback wallet. That amounts to approximately 31.3 million dollars. Of this amount, approximately 118, 351 SOL or $19.3 million has already been spent to purchase 2.99 billion PUMP tokens at a mean price of 0.0064 per PUMP.

The issue of PUMP token was heated. Pump.fun was able to sell all its tokens in just 12 minutes and collected $600 million. That was far quicker than the intended 72-hour sales period. A lot of traders flooded in, believing that they could make money out of the memecoin hype.

But not everyone was enthusiastic following the launch. Certain crypto research companies cautioned that the PUMP token has no obvious utility and cannot provide governance rights to the owner. Critics opined that the launch appeared as a form of liquidity exit rather than a serious project. They have also reported that Pump.fun has a history of selling platform fees which it should be using to support the community.

The buyback indicates that the team is keen to defend the value of the token. Along with that, the platform also became the headline with its initial acquisition. Pump.fun has acquired Kolscan, a wallet-monitoring app that tracks the activities of leading traders in the blockchain.

Pump.fun Faces Rising Competition from BONK and letsbonk.fun

Kolscan stands for “key opinion leader scan.” It assists individuals to view those traders who make money and the coins that they purchase or sell. The site also features a leaderboard that ranks leading wallets based on their performance. Pump.fun can also attract traders who wish to track smart money on-chain with the help of Kolscan, and this may attract more individuals to the platform.

Meanwhile, Pump.fun is a competitive website. A research company, BitMart, explains that new platforms such as letsbonk.fun are picking up speed. Similar to the PUMP, the BONK token does not grant its holder governance rights. It has additional characteristics such as in-built liquidity and deflationary features. They can assist the BONK tokens to maintain their value through the development of purchasing pressure and lowering supply over time.

In its report, BitMart cautioned that the future of Pump.fun hangs on its next actions. The team has to create a better value for the PUMP token and win people back after the initial concerns of selling. Otherwise, its market share might be seized by other memecoins.

In brief, the massive buyback and the Kolscan deal are signs that Pump.fun wants to remain relevant. The platform is trying to show that it can bring value in terms of more than just meme hype. At the moment, everyone is watching the team to determine whether they can make PUMP a brand name to reckon with in the volatile world of memecoins.