In recent days, the buyback strategy of the PumpFun platform has been a hot topic of discussion in the cryptocurrency market. As concerns rise within the community, questions about the feasibility and sustainability of this strategy arise.
Analysis of the Buyback Strategy
On-chain analysis suggests that PumpFun spent 100% of its daily revenue on PUMP token buybacks for just one day. However, experts express doubts about the sustainability of such a practice in the long term.
Community Response
Amid market rumors that PumpFun plans to increase its buyback rate and use all of its daily revenue to support the PUMP token, the decentralized community Dumpster DAO urged users to closely monitor on-chain data. The DAO noted that this strategy had only been fully implemented for one day previously.
Uncertainties and Suspicion
It has also been reported that not all of the funds allocated that day have been redeemed. This raises suspicions that the platform may be attempting to mislead on-chain observers. Specifically, the redeemed tokens were not burned or transferred to another address, leading to questions about the completion of these transactions.
Thus, PumpFun's token buyback strategy has sparked many questions and controversies within the community. Despite initial steps, the settings and transparency of their implementation remain under close scrutiny by market participants.
