Crypto token platform Pump.fun has allocated $18 million for buyback operations, triggering a 15% price surge for its native PUMP token within 24 hours.
Despite this immediate market reaction, fundamental concerns persist regarding PUMP’s lack of practical utility. The token currently offers no governance rights, revenue-sharing mechanisms, or functional applications within the ecosystem, raising questions about its long-term sustainability.
Market analysts express skepticism toward the buyback strategy’s legitimacy, characterizing the pattern as cyclical price support devoid of substantive value creation. Observers note similar buyback approaches employed by projects including FET, AAVE, IOST, and Polyhedra, though experts emphasize such measures cannot substitute for robust underlying fundamentals.
For Pump.fun to justify its $4 billion valuation, industry experts stress the urgent need to develop tangible utility frameworks and governance structures beyond temporary market interventions.