Pump.fun has had buybacks worth over $65 million worth of its native token PUMP, using fees collected from memecoin launches.
Author: Sahil Thakur
Pump.fun has had buybacks of worth over $65 million worth of its native token PUMP, using fees collected from memecoin launches. In total, more than 16.5 billion tokens have been bought back since launch, at an average cost of $0.003785, according to on-chain data.
Buybacks now happen daily, ranging between $1.3M and $2.3M last week alone. The goal: absorb sell pressure and stabilize price. So far, it’s working – PUMP was up by 30% in August, despite a revenue slowdown and broader market headwinds.
But serious risks are mounting. A class-action lawsuit, first filed in January and amended in July, now accuses Pump.fun of operating like an “unlicensed casino” and a “rigged slot machine.” Plaintiffs claim total investor losses have reached $5.5 billion.
Src: Dune Analytics
PUMP has gained 54% since its August low. The current price hovers around $0.0035, supported by 24-hour trading volume over $330 million.
The platform allocates 30% of its revenue to buybacks. Of the repurchased tokens, 60% are burned, while 40% go toward staking rewards. This dual mechanism creates demand while shrinking .
Pump.fun is also pushing to diversify revenue. PumpSwap, its decentralized exchange, generated $5 million in revenue last month with $10 billion in trading volume. Another initiative, The Glass Full Foundation, invests in promising memecoin projects using buyback funds.
Pump.fun’s explosive rise has attracted scrutiny. The updated class-action lawsuit paints the platform as predatory, claiming insiders profit at the expense of later investors.
Legal pressure comes on top of slowing growth. Between July 28 and August 3, platform revenue hit just $1.72M, the lowest since March. For context, daily revenues once peaked above $13 million.
One day in August saw Pump.fun spend $12M on buybacks, amounting to 99% of its entire weekly revenue. That burn rate raises serious sustainability questions.
Regulators are watching too. Pump.fun had already barred users in the U.S. and U.K. from its $600 million token sale in July, which sold out in 12 minutes.
Despite the headwinds, Pump.fun still leads the Solana memecoin market. It holds a 73% share, compared to 9% for rival LetsBonk. Over 70,000 wallets now hold PUMP, with nearly half holding small retail-size amounts under 10,000 tokens.
Its user base continues to grow, even as legal risks and market volatility cast shadows. Pump.fun says it plans to use recent sale proceeds to build a decentralized social network, aiming to rival TikTok and Facebook.
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