PUMP Jumps as 11% Supply Bought — CEO Questions the Move

Key Notes

• PUMP trades 7.2% lower, holding above key support at $0.0034.
• DeFiance Capital’s founder questions why price lags despite major buybacks.
• Community concerns grow amid fading meme coin hype.

Pump.fun (PUMP) has slipped 7.2% in the last 24 hours, trading just above a crucial support zone at $0.0034.

PUMP, one of the top meme coins, has been in a persistent two-month downtrend, losing roughly 58% of its value since mid-September.

This PUMP price drop has sparked criticism across the crypto community, including from Arthur Cheong, founder of DeFiance Capital. Cheong recently questioned on X why the meme coin remains below its July public sale price of $0.004 despite aggressive buybacks.

The executive noted that Pump.fun has already bought back around 11% of the circulating supply.

Data shared by the platform shows over $175 million worth of PUMP bought so far. Cheong suggested that at this pace, PUMP buybacks could reach between $400 and $500 million annually.

Generally, buybacks are highly positive for altcoins as they shrink the circulating supply, which can support higher prices.

However, in PUMP’s case, the price continues to weaken despite these buybacks. This has resulted in growing doubts about the project’s long-term sustainability.

Why Is Pump.fun’s Enthusiasm Fading?

Skepticism around Pump.fun has been rising due to platform-specific issues and a cooling meme coin market.

Analysts highlight a spike in inorganic token launches that create artificial hype, while overall retail interest in meme coins has faded.

Legal concerns have also added pressure. Pump.fun is facing a U.S. class-action lawsuit alleging it enabled unregistered token sales and contributed to large-scale losses.

Related article: PUMP Comeback? Pump.Fun Reclaims Top Spot, Four.Meme Falls BehindCritics argue the team has been slow to implement governance measures and suffers from inconsistent communication.

Plus, the pending PUMP airdrop has fueled further supply concerns and eroded the trust of many community members.

What’s Ahead for PUMP Price?

Many market participants have already lost confidence in both PUMP and the broader meme coin sector.

However, popular crypto trader ACX noted on X that the meme coin continues to trade within a descending triangle pattern and can soon see a breakout.

The trader also warned that PUMP may briefly fall toward the lower boundary around $0.0025 before starting a solid upward move.

Another crypto expert, Altcoin Sherpa, also shared an optimistic outlook for PUMP price. He argued that PUMP currently offers a mid-term opportunity over the next 4-12 weeks, citing strong platform revenue.

According to him, if the token manages to hold the $0.0034 support zone, it could establish a bullish setup and start reversing its recent losses.

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