Solana News Today: Pumpfun Initiates $19.2 Million Buyback Boosting $PUMP Token 60%

Pumpfun, a prominent player in the cryptocurrency market, has made a significant move by initiating a $19.2 million buyback of its native token, $PUMP. This unexpected action has sent ripples through the market, as the company deployed 187,770 $SOL, valued at approximately $30.53 million, from its fee wallets to a new address designated for the buyback. The buyback wallet, identified as "3vkpy5," has already spent 118,350 $SOL, equivalent to $19.2 million, to purchase 3.196 billion $PUMP tokens at an average price of around $0.006 per token.

This buyback marks a dramatic shift in Pumpfun's strategy. Previously, the company had been aggressively selling its fee revenue on Kraken, offloading approximately 4.1 million $SOL, valued at $741 million, at an average price of $180 per token. This selling pressure had become a familiar sight in the market, reflected in the token's price movements. However, with the recent buyback, Pumpfun has reversed its course, transitioning from a seller to a buyer. This move is not merely symbolic; it indicates a full-on buyback mode, with nearly $11.3 million still sitting in the wallet, ready to be deployed.

The buyback comes on the heels of a highly successful presale for $PUMP, which raised over $500 million in just 12 minutes at a price of $0.004 per token. Despite the initial hype, the token experienced a post-listing dip, leading some to believe that the peak had been reached. However, the recent buyback has reignited interest in $PUMP, pushing its price above $0.006 and demonstrating strong on-chain and centralized exchange volume. This price increase represents a 60% gain from the presale price, indicating a bullish shift in momentum.

Pumpfun's buyback strategy is not just about price manipulation; it is about narrative control. By redirecting fee revenue to buy back tokens, the company is sending a clear message that it stands behind its token. This move has garnered positive market sentiment, as the buyback is backed by real financial power. With $11.3 million still available in the buyback wallet, Pumpfun has the potential to further support the token's price, reduce its float, and extend the current trend. The market is now closely watching the remaining funds in the "3vkpy5" wallet, anticipating the next move from Pumpfun.