PUMP Token Crashes 22% Days After $600M ICO Despite Major Buyback Effort

PUMP drops over 22% post-ICO as Pump.fun faces heat from rising competitor LetsBONK despite massive token buyback.

Fridah Kangai
July 20, 2025
12:48 pm

Fridah Kangai

Fridah Kangai is a dedicated crypto journalist with a sharp eye for market trends, blockchain innovation, and digital asset movements. She specializes in breaking down complex topics into clear, engaging stories for both seasoned investors and curious newcomers. With a passion for decentralization and a pulse on the ever-evolving crypto space, Fridah delivers timely, accurate, and insightful coverage. Her work bridges the gap between technology and everyday understanding in the world of cryptocurrency.

PUMP token plunges after massive $600M ICO and buyback.
LetsBONK overtakes Pump.fun as memecoin minting leader on Solana.
Pump.fun deploys new strategies to regain momentum amid competition.

PUMP, the newly launched token from Pump.fun, has dropped over 22% today. The token is now trading around $0.004, returning to its debut price within days of the ICO.

The downtrend is after a brief run above $0.006 following the ICO on Monday. the token generated $12 million in just 12 minutes by making 15% sales to the open market.

Privately offered at a $4 billion valuation, 18 percent of the 1 trillion token supply was distributed. This great launch, however, has not allowed the token to retain early gains in a rapidly developing market.

CTOs are the lifeblood of pump fun – they formed most of the success cases on the platform and will continue to dominate

but one major pain point is that these CTOs don’t have any funding. especially when the dev has abandoned the community and is continuing to earn fees, that… https://t.co/40OnPQEHHX
— alon (@a1lon9) July 18, 2025

The use of the token has declined as competitors emerge with new platforms. Two weeks ago, the BONK-based memecoin generator, LetsBONK, surpassed Pump.fun on daily token launches and took the lead.

BONK, the token tied to LetsBONK, has surged 64% since the platform’s April launch. New daily token mints have also declined in the larger Solana ecosystem.

Pump.fun Fights Back With Buybacks, Community Incentives, and Acquisition

To reverse the slump, Pump.fun transferred 187,770 SOL into a buyback wallet on Tuesday. The repurchase price of PUMP was an average of 0.0064, at a value of approximately 31.3 million dollars.

This pushed the price of PUMP to about $0.0067, which temporarily increased by 17 percent. Pump agreed to conduct frequent token buybacks with 25 percent of the revenue obtained in a protocol.

Nevertheless, platform revenue fell last Friday, taking only $968 000 in fees. This is low and an indicator of dropping activities within the platform.

As an answer, co-founder Alon Cohen came up with a feature that allows an inactive project to be taken over by the community. This allows the users to redirect creator fees to the network’s most lively and active posters.

Pump.fun has also revealed an acquisition of Kolscan, a wallet tracking tool based on Solana. Kolscan tracks the best onchain traders and has the potential to enhance the usefulness of Pumps’ ecosystem of tools and data.

Indicative of growing uncertainty and rising competition, PUMP has experienced a sharp and noticeable decline. The future of Pump.fun will be determined by the quality of its incentives and buyers, as to whether it returns to the interest of its users.

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