The project buys back its own token every day. Why isn’t that supporting the price?😟
I thought buybacks and burns meant the price should rise. Turns out, it’s more complicated.
Pump.fun uses part of its revenue to buy $PUMP . In April 2026, it lowered that share to 50% and locked it into a smart contract for 12 months.
But revenue is weakening: it fell 16% from its October 5 peak to $1.59 million a day, and demand from buybacks fell along with it.
According to calculations in one analytical article, buybacks account for only about 2% of trading volume: $1.7 million versus $112.2 million in trading volume.
My takeaway: buybacks show that the project is making money, but they don’t guarantee the price will rise. I look at where the money for buybacks comes from and how large they are relative to trading volume.
This is not advice or a forecast.
Do you think token buybacks are a good sign?
I thought buybacks and burns meant the price should rise. Turns out, it’s more complicated.
Pump.fun uses part of its revenue to buy $PUMP . In April 2026, it lowered that share to 50% and locked it into a smart contract for 12 months.
But revenue is weakening: it fell 16% from its October 5 peak to $1.59 million a day, and demand from buybacks fell along with it.
According to calculations in one analytical article, buybacks account for only about 2% of trading volume: $1.7 million versus $112.2 million in trading volume.
My takeaway: buybacks show that the project is making money, but they don’t guarantee the price will rise. I look at where the money for buybacks comes from and how large they are relative to trading volume.
This is not advice or a forecast.
Do you think token buybacks are a good sign?