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PUMP Struggles Despite $20 Million Buyback PUMP Struggles Despite $20 Million Buyback

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PUMP Struggles Despite $20 Million Buyback – Crypto News

Published

12 months ago

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Two whales who bought into the ICO have sold more than $100 million worth of PUMP so far.

Memecoin launchpad pumpfun’s buyback strategy isn’t lifting its recently launched token as holders had likely hoped.

The buyback wallet, named kippahstayson.sol as a nod to the WIF memecoin’s “the hat stays on” slogan, purchased roughly $20 million worth of the PUMP token on Tuesday, using funds transferred from pumpfun fee-related wallets, with $17 million from a single AMM fee wallet.

However, the PUMP token is down almost 10% over the last 24 hours with two ICO whales selling more than $100 million worth of PUMP since its launch.

PUMP Chart – CoinGecko

Part of this negative price action is fueled by token selling from funds that purchased PUMP via its ICO at a $4 billion valuation. One wallet, which purchased 25 billion PUMP for $100 million has sold more than $50 million worth of PUMP tokens over the last 48 hours, while another wallet purchased 12 million PUMP for just over $50 million, and has sold more than 80% of their ICO purchase for roughly $62 million

Leaning further into memetics, the buyback wallet is still sitting on 69,420 SOL, worth almost $12 million, in its buyback wallet which presumably will be used to acquire more PUMP to send to the pumpfun treasury.

Buyback Structures

Unlike most protocols which run buyback structures, there are no public details regarding fee percentages or regularity of PUMP buybacks other than the fact that these initial buybacks are being funded by retroactive fees earned by the protocol. The lack of clarity may be causing investors to have doubts about investing into PUMP.

While the Pump ecosystem’s fee generation has slowed down due to the overall decline in memecoin trading, and the rise of competition such as LetsBonk, the protocol is still the third-highest earner in all of DeFi over the last year, and sixth-highest earner over the last 30 days. Pump has generated $29.5 million in revenue over the last month.

Buyback strategies have gained increased popularity due to the effectiveness of Hyperliquid’s assistance fund, which has purchased $1.27 billion worth of HYPE with protocol fees. The mechanism is particularly attractive for protocols with consistent fee accrual.

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