Pump.fun's Creator-Focused Strategy Drives $2M in 24 Hours

In recent developments, Pump.fun has implemented a new fee model as part of its broader initiative called Project Ascend, aimed at significantly increasing earnings for creators on the platform. This dynamic model adjusts the creator fee percentage based on the market cap of the token. Creators whose tokens fall within the market cap range of $88,000 to $300,000 will earn the highest percentage fee of 0.95% per trade, while the rate decreases as the market cap increases [1]. The initiative has already shown immediate results, with $2 million distributed to creators in the 24 hours following the update, a substantial increase from the $198,000 distributed the previous day under the old model [1].

Alongside the new fee model, Pump.fun has also undertaken aggressive buybacks to stabilize the price of its native token, PUMP. Over $62 million has been spent on repurchasing 16.5 billion PUMP tokens, with daily buybacks averaging between $1.3 million and $2.3 million. As a result, the PUMP token has seen a 54% increase in value since its August low, reaching $0.003522 as of the latest data [2]. The buyback strategy utilizes platform-generated revenue, primarily from fees collected when users launch memecoins, to reduce sell pressure and support the token’s price [2].

Despite its financial efforts, Pump.fun faces growing competition in the Solana memecoin launchpad market. A newly launched platform called LetsBonk briefly overtook Pump.fun in 24-hour revenue in July. However, Pump.fun has since reclaimed the top spot, holding a 73% market share in the last seven days with $4.5 billion in trading volume, compared to LetsBonk’s less than 9% market share [2]. This resurgence suggests that Pump.fun remains a dominant force in the rapidly evolving memecoin landscape.

The platform's user base has also shown signs of broadening engagement, with the number of unique PUMP holders reaching over 70,800. Smaller wallets, which hold less than 10,000 PUMP tokens, now account for 46% of the distribution, indicating growing retail participation [2]. This trend could further support the token's price as a larger number of investors hold and trade PUMP.

However, Pump.fun’s aggressive growth is not without legal challenges. A class-action lawsuit, amended on July 23, accuses the platform of using “guerrilla marketing” tactics and likening it to an “unlicensed casino” [2]. The lawsuit claims that the platform’s structure resembles a “rigged slot machine,” with early participants profiting at the expense of later entrants. The legal case is ongoing and could have significant implications for Pump.fun’s future operations.

Given the recent price action and platform developments, analysts are cautiously optimistic about the potential for PUMP to break the $0.005 threshold in September. While no official forecasts have been released, the combination of increased creator earnings, token buybacks, and a growing user base could provide the necessary support for such a price move [2].

Source:

[1] Pump.fun's New Fee Model Hands Out $2M to Creators in ... (https://finance.yahoo.com/news/pump-fun-fee-model-hands-125849600.html)

[2] Pump.fun spends over $62M on buybacks to boost PUMP ... (https://cointelegraph.com/news/pump-fun-62m-buybacks-pump-token-price)