PumpFun is currently facing price stability issues with its PUMP token, prompting the project to initiate buybacks. Recent actions aim to alleviate selling pressure from early investors.
Current Situation of PUMP Price
The price of the PUMP token has been volatile, leading PumpFun to take actions for stabilization by sending $5.6 million in SOL to a new wallet for token buybacks. According to Arkham, this wallet has already spent $6.68 million on PUMP tokens, with $5.72 million moved to the Squads Vault. These measures are intended to stimulate demand and reduce sell-off pressure from early investors.
Launch of Glass Full Foundation
To enhance ecosystem support, PumpFun launched the Glass Full Foundation (GFF), which has invested $1.69 million across ten different tokens. GFF aims to increase liquidity for community-driven meme tokens, with significant investments in TOKABU and HOUSE accounting for over 40% of the total fund.
Market Competition
The launch of GFF comes amid growing competition from the LetsBonk.fun project, which is gaining momentum by collaborating with Raydium and receiving support from the Bonk community. As of this writing, the PUMP token traded at $0.0034, down 28% over the past seven days, while trading volume remains high at $300 million.
The situation surrounding the PUMP token and PumpFun's proactive measures to buy back its tokens highlight the significant challenges faced by the project. The launch of the Glass Full Foundation could be a crucial step towards restoring liquidity and resilience in the ecosystem.
