Pumpfun has made a strategic decision to shift its market approach, initiating a buyback of $PUMP tokens worth $19.2 million.
Changes in Pumpfun's Strategy
In the past 8 hours, Pumpfun has executed an open-market buyback, spending over 118,000 SOL to purchase 3.196 billion $PUMP tokens. This move was a sharp turn from the previous strategy, which was to sell fees through the Kraken exchange.
Buyback Instead of Sales
Prior to this strategic change, Pumpfun had been selling its fee-generate SOL regularly on Kraken, with nearly 4.1 million SOL sold since May 19, 2024, totaling roughly $741 million at an average price of $180. This large-scale selling had created some downward pressure, viewed by many as a bearish move.
Market Reaction to Updates
Recently, Pumpfun also held a massive presale exceeding $500 million, which sold out in just 12 minutes. Despite a slight dip in token value post-launch, the recent buyback activity has quickly helped it recover. This strategic buyback may align incentives better with the community and token holders moving forward.
Pumpfun's recent buyback could represent a new phase in supporting price stability and potential token growth in the future.
