PUMP, the native token of Solana-based memecoin launchpad Pump.enjoyable, has skilled a major worth enhance following its first-ever token buyback.
On July 16, blockchain analyst Ember CN reported that Pump.enjoyable spent 111,953 SOL, price $18.34 million, to repurchase 3.04 billion PUMP tokens at a median worth of $0.006.
Based on Ember CN, the SOL used for the buyback originated from the platform’s payment wallets, which totaled 187,770 SOL, valued at $30.59 million. After the buyback, Pump.enjoyable nonetheless holds 69,420 SOL, price $11.48 million, leaving room for additional buybacks sooner or later.
This transfer represents a shift from the platform’s earlier strategy of transferring payment income to Kraken on the market. Over the previous yr, Pump.enjoyable has bought over $700 million price of SOL on the open market.
As a substitute, the platform now opts to make use of these funds for token buybacks.
Following information of the buyback, CoinMarketCap’s knowledge revealed a 20% worth rally that pushed PUMP’s worth to roughly $0.006782 as of press time. This raised the token’s totally diluted valuation to $6.3 billion, which makes the asset extra helpful than Ethereum layer-2 networks like Optimism and Arbitrum.
Remarkably, the token can be among the many prime 20 digital belongings by buying and selling quantity within the final 24 hours.
Valuation considerations
Regardless of the spectacular efficiency of the token, market considerations about its long-term worth have begun to emerge.
In a current report, BitMart Analysis raised considerations concerning the token’s lack of inherent utility.
The report identified that PUMP presents no governance rights, profit-sharing mechanisms, or payment returns, that means its worth primarily will depend on model hype—an unreliable driver for long-term token efficiency.
Based on the agency:
“The token lacks actual utility or governance rights, and concern the launch is extra of a liquidity exit than a long-term plan. The workforce’s historical past of promoting platform charges as an alternative of supporting the neighborhood has solely deepened considerations.”
Furthermore, BitMart famous that Pump.enjoyable’s dominance is being challenged by rising platforms corresponding to letsbonk.enjoyable.
Whereas BitMart conceded that the BONK token additionally avoids providing governance or possession, the agency famous that rival token fashions embrace built-in liquidity and deflationary mechanisms, which create market depth and worth help.
Contemplating this, the analysis agency concluded:
“The way forward for PUMP will depend on whether or not the workforce can construct a stronger token worth and regain market belief after the preliminary strain.”
