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PUMP Token Skyrockets 20% on Massive Buyback - Price Prediction Inside

Pump.fun just deployed $30M in SOL to buy back $PUMP tokens, triggering a 20% price spike. What’s next for the token and should traders hold or exit?

Pump.fun flipped the script on the typical memecoin launch. On July 16, 2025, it deployed 118,351 SOL (about $19.3 M) to buy back nearly 3 billion PUMP tokens, driving a sharp 20% price jump. Here’s how that unfolded and why it matters.

What happened?

  • Fee revenue transfer: Pump.fun moved 187,770 SOL (~$30.5 M) from its fee wallets into a designated buyback address.
  • Strategic buyback: Within hours, 111,953–118,351 SOL (~$18–19 M) were used to repurchase around 2.99–3.04 billion PUMP tokens, slashing circulating supply.
  • Market reaction: Price jumped ~20%, swinging between $0.0063 and $0.0068. Fully diluted valuation (FDV) hit ~$6.3–6.5 billion.
  • High liquidity spike: Trading volume soared by ~140%, indicating massive buy-in interest.

Why this is big

  • Supply reduction: Removing ~3 billion tokens applies direct upward pressure echoing stock buyback logic.
  • Shift in tokenomics: Pump.fun pivoted from selling fee revenue to massive buybacks marking a more aggressive long-term strategy.
  • Ecosystem confidence: Retaining 69,420 SOL ($11.5 M) primes them for future rounds.
  • Retail buzz: $PUMP briefly overtook BONK in market cap, adding hype and visibility.

What’s next?

Utility development

Critics note PUMP still lacks staking, governance, or utility, limiting longevity.

Whale risks

Over 60% of presale supply sits with whales, pumps can reverse fast on heavy selling.

Ongoing buybacks

With ~11.5 M SOL reserve, more buybacks could stabilize price further but also signal market control.

Exchange listings and leverage

Already on Coinbase, Bybit, KuCoin, Hyperliquid (5× leverage) any new listings will spur fresh momentum.

Comparative platforms

Competitors like LetsBONK.fun generate revenue and use deflationary mechanics, eating into Pump.fun momentum .

Quick takeaways for investors

  • Short-term play: If buybacks persist and whales hold, PUMP may hold above $0.0065. Technicals suggest upside toward $0.0074 by month-end.
  • Long-term vision: Without meaningful utility, PUMP risks being just a speculative meme peg, not a sustainable asset.
  • Risk checklist:
    • Is buyback trend continuing?
    • Any whale off-loading?
    • New platform features or token use-cases?

FAQ

Q: Will they burn the bought tokens?
A: No clear burn has been announced. Tokens are being held, possibly for controlled future release or another strategic move .

Q: How big is the reserve for future buybacks?
A: About 69.4 K SOL remain (~$11.5 M), enough for another round, suggesting ongoing price support.

Q: Does PUMP have utility?
A: Not yet. Analysts flag the lack of staking, governance, or revenue-sharing, PUMP is still hype-driven .

Q: Could this fail?
A: Yes. If whales dump or buybacks stop, price could drop quickly. Foundation without utility puts it in meme territory, riskier than established tokens.

Written by
Bananagun
published on
July 17, 2025