Pump.fun $18M Buyback Sparks 15% PUMP Rally Amid Utility Doubts
Pump.fun buyback of $18 million in PUMP tokens has driven a 15% rally within 24 hours, highlighting strong short-term bullish momentum. The Pump.fun buyback program, funded by transaction fees, has withdrawn over 3.04 billion PUMP from circulation to reinforce tokenomics and support a price floor. However, the PUMP token still lacks governance rights, revenue sharing or real-world use cases. Critics warn this strategy may mask speculative risks and precede sharp market corrections. Similar buybacks by FET, AAVE and IOST produced only temporary gains without robust fundamentals. Traders should monitor tokenomics, governance developments and roadmap updates, as buyback-driven rallies often increase volatility and demand disciplined risk management.
Bullish
The Pump.fun buyback has triggered a 15% price surge in 24 hours, demonstrating strong buying pressure and short-term bullish momentum. By withdrawing over 3 billion PUMP tokens, the program supports a price floor and bolsters tokenomics. However, the token’s lack of governance rights and real-world utility raises speculative risks and heightens volatility. Historical buyback campaigns in FET, AAVE and IOST show initial rallies often give way to rapid corrections when fundamentals are weak. Traders should capitalize on the immediate bullish pressure while closely monitoring governance developments and potential market retracements.