Pump, the native token of Solana-based Memecoin Launchpad Pump.Fun, has experienced a considerable price increase after the very first token-backkoop.
On July 16 Blockchain analyst Ember CN reported That pump.Fun spent 111,953 Sol, worth $ 18.34 million, to reduce 3.04 billion pump tokens at an average price of $ 0.006.
According to Ember CN, the SOL used for the return of the Fee Wallets of the Platform, which amounted to a total of 187,770 Sol, with a value of $ 30.59 million. After the return, Pump.Fun still has 69,420 Sol, worth $ 11.48 million, so that in the future has room for further return.
This step represents a shift of the earlier approach to the platform for transferring reimbursement income to Kraken for sale. In the past year, Pump.Fun has sold more than $ 700 million in SOL on the open market.
Instead, the platform chooses to use those funds for buybacks from Token.
After news about De Levekoop, Coinmarketcaps facts Unveiled a price rally of 20% that pushed the value of the pump to around $ 0.006782 from the moment of press. This increased the fully diluted appreciation of token to $ 6.3 billion, which makes it more active than Ethereum Layer-2 networks such as optimism and arbitrum.
It is remarkable that token is also one of the top 20 digital assets by acting in the past 24 hours.
Appreciation problems
Despite the impressive performance of token, market problems about the long -term value have started.
Bitmart research was collected in a recent report to assure About the lack of inherent use of the token.
The report pointed out that PUMP does not offer administrative rights, profit -sharing mechanisms or reimbursement returns, which means that its value is mainly dependent on brand hype, an unreliable driver for long -term performance.
According to the company:
“It lacks real utility or administrative rights, and fear that the launch is more of a liquidity output than a long-term plan. The history of the team of selling platform rates instead of supporting the community has only deepened worries.”
Moreover, Bitmart noted that the dominance of Pump.Fun is challenged by emerging platforms such as Letsbonk.Fun.
While Bitmart admitted that the Bonk token also avoids offering governance or ownership, the company noted that rival token models include built-in liquidity and deflotional mechanisms that create market depth and price support.
Given this, the research agency concluded:
“The future of the pump depends on whether the team can build up a stronger token value and regain market confidence after the initial pressure.”