A hotly debated topic in the cryptocurrency market in recent days has been the token buyback strategy of memecoin launch platform PumpFun.
On-chain analysis suggests that the platform spent 100% of its daily revenue on PUMP token buybacks for just one day. However, there are serious doubts that this approach is unsustainable.
Market rumors suggest that PumpFun plans to increase its buyback rate and use all of its daily revenue to support the PUMP token. However, decentralized community Dumpster DAO has cautioned against these claims. The DAO urged the community to carefully monitor on-chain data, noting that the platform had only fully implemented this strategy for one day previously.
It's also noted that not all of the funds allocated that day have yet been redeemed. This has raised some suspicions that the platform is attempting to mislead on-chain observers. The redeemed tokens were not burned or transferred to another address, making it unclear whether these transactions were truly completed.
*This is not investment advice.
