- Memecoin launchpad Pump.fun has spent over US$65 million to buy back its native PUMP token, using revenue generated from memecoin fees in an effort to curb selling pressure and stabilise its price.
- The buyback strategy appears to be working, as PUMP is up over 30% in the last month, despite a recent drop in platform revenue and the broader crypto market being under pressure.
- The company is also facing a class-action lawsuit filed in January, which has been amended to accuse the platform of operating as an “unlicensed casino” and a “rigged slot machine”, claiming investor losses have reached US$5.5 billion.
Memecoin launchpad Pump.fun has poured over US$65M (AU$99M) into buying back its own token, PUMP, according to Dune Analytics.
Over 16.5 billion tokens have been pulled out of circulation at an average cost of US$0.003785 (AU$0.0058), part of an ongoing effort to keep the price from sliding and absorb sell pressure.
The funds come from recycled revenue, mainly the fees it charges users to mint memecoins, into daily repurchases. Dune data shows those buybacks have been steady in the past week, landing between US$1.3M (AU$2M) and US$2.3M (AU$3.5M) each day.
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Since its launch, Pump.fun has pulled in more than US$775M (AU$1.18M) in fees, DefiLlama data shows, but the platform’s intake crashed to US$1.72M (AU$2.6M) during the week of July 28 to August 3, its weakest stretch since March 2024.
PUMP is up over 30 % in the past month and about 9 % in the past week, trading now at US$0.003559(AU$0.0060). Even so, PUMP is a long way from its launch peak, and its recovery depends on whether platform fees can stay robust in a slowing market.
Meanwhile, large caps remain under pressure: Bitcoin trades at around US$108,200 (AU$165,000) and Ethereum at US$4,337 (AU$6,600), both down between 4.3% and 8% this week, respectively.
Pump.fun’s Legal Woes
Yet the business is under pressure elsewhere, as a class-action lawsuit filed January 30 accused the company of drumming up “guerrilla marketing” hype to unload risky tokens.
By July 23, the case had been amended with harsher language. Plaintiffs now call Pump.fun an “unlicensed casino” and compare it to a “rigged slot machine”, arguing that insiders win at the expense of latecomers. Claimed investor losses have ballooned to US$5.5B (AU$8.4B).
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