Pump.fun Buybacks Fail to Lift PUMP Price Amid Whale Selling

The Pump.fun (PUMP) token has seen a nearly 35% decline over the past month, significantly underperforming the crypto market, despite the platform's ongoing buyback program. Since its debut, Pump.fun has allocated 100% of its revenue to purchasing PUMP, resulting in $218.1 million in total buybacks, with $32.7 million in the last 30 days alone. However, this aggressive support mechanism has failed to counteract the impact of a broader market capitalization decline of nearly 30% since early October.

Analysts note that aggressive buybacks have limited impact during market downturns, especially if token utility is weak, pointing out that PUMP is down over 80% from its all-time high. This bearish sentiment is reinforced by significant whale activity; one whale recently deposited 3.8 billion PUMP (worth about $7.57 million) into FalconX after holding them for three months, realizing a substantial unrealized loss. Data shows that large investor balances (wallets holding over 1 million PUMP) have declined by 13.07% in the last 30 days, signaling waning confidence. Ultimately, the article concludes that sustained buybacks are unlikely to provide lasting price support as long as selling pressure from large holders continues amidst weak investor risk appetite.

(Source：BeInCrypto)