Pump.fun buyback hits $62M as lawsuit heat mounts

The Pump.fun token buyback program has crossed $62.6 million, according to data from Dune Analytics, as the Solana-based memecoin launchpad intensifies efforts to stabilize its native asset, PUMP. Since launching the initiative, the platform has repurchased more than 16.5 billion tokens at an average cost of $0.003785.

The strategy is funded directly through platform-generated revenue, primarily user fees for launching memecoins. Daily buybacks have ranged from $1.3 million to $2.3 million over the past week, demonstrating consistency despite fluctuating market conditions.

“Token buybacks are one of the few levers platforms like Pump.fun can pull to maintain price stability,” — Michael Bentley, DeFi researcher at TokenLogic. “They create an artificial floor that reassures retail investors, at least in the short term.”

Pump.fun has generated over $775 million in revenue since inception, per DefiLlama, though earnings dipped sharply between July 28 and Aug. 3, when the platform logged just $1.72 million in weekly revenue as its weakest performance since March 2024.

Price and participation show signs of recovery

The Pump.fun token buyback appears to be having its intended effect. PUMP has risen more than 12% over the past month and about 9% in the last week, now trading at $0.003522. That marks a 54% rebound from its August low of $0.002282.

On-chain data points to stronger community participation as well. The number of unique PUMP holders has climbed to more than 70,800. Smaller wallets those holding fewer than 10,000 PUMP now make up 46% of all ownership, suggesting a widening retail base.

“Expanding token distribution to smaller holders strengthens the project’s community foundation,” — Sarah Chen, analyst at Solana Foundation. “It reduces concentration risk and helps establish more organic liquidity.”

The retail uptick could prove critical as Pump.fun works to reassert dominance in the crowded Solana memecoin ecosystem.

Competition from LetsBonk challenges market share

Despite recent gains, Pump.fun has faced intensifying competition. On July 7, LetsBonk, a rival Solana launchpad briefly overtook Pump.fun in 24-hour revenue, according to aggregator Jupiter. The newcomer maintained momentum through July, capturing chunks of market share.

However, recent data shows Pump.fun has regained ground. In the last seven days, it secured a 73% market share with $4.5 billion in trading volume. By contrast, LetsBonk’s market share has slipped to below 9%, with only $543 million in volume.

The recovery, paired with the Pump.fun token buyback, suggests the platform is still able to leverage its scale and liquidity advantage. Yet analysts warn that innovation among competitors could test Pump.fun’s staying power.

Class-action lawsuit casts a shadow

Even as the Pump.fun token buyback bolsters price and user metrics, the platform is under mounting legal scrutiny. A class-action lawsuit filed January 30 alleges Pump.fun engaged in “guerrilla marketing” to artificially hype tokens.

On July 23, the complaint was amended to describe the platform as an “unlicensed casino,” comparing its model to a “rigged slot machine” where early participants profit at the expense of later entrants. Plaintiffs estimate total investor losses at $5.5 billion.

The legal battle could determine whether Pump.fun’s model of fee-driven token launches remains viable under regulatory oversight. Analysts note that the Pump.fun token buyback may buy time for investor confidence, but litigation risk is an overhang.

“Investor protection concerns are increasingly front and center in DeFi,” — Elizabeth Rossiello, CEO of AZA Finance. “Pump.fun’s lawsuit could become a landmark case in how regulators and courts treat meme-driven token platforms.”

Outlook for investors

For crypto investors, the Pump.fun token buyback represents both a stabilizing mechanism and a potential warning sign. While it has supported token prices and broadened participation, it also underscores reliance on revenue-driven interventions rather than organic demand.

With 70,000 holders, a $775 million revenue history, and renewed market share leadership, Pump.fun remains a heavyweight in the Solana ecosystem. Yet the outcome of the lawsuit and its broader regulatory implications could shape whether the Pump.fun token buyback is remembered as a stabilizing innovation or a temporary patch on deeper structural risks.