Pump.fun's PUMP Token Surges 50 Percent Amid Buyback Program Success

Pump.fun's PUMP token has seen a significant price increase of 50 percent in just one week, rising from €0.00352 to €0.00526. This growth is largely attributed to the buybacks funded by the platform's revenue, which have now destroyed almost a sixth of the maximum supply.

The buyback program has been running for over a year and has seen notable increases in revenue, particularly from September 26. According to DefiLlama, the total revenue flowing to token holders is between $371 million and over $466 million.

While the US Securities and Exchange Commission (SEC) recently clarified its stance on buyback programs, stating that announcing such a program does not constitute a promise of entrepreneurial effort, this clarification has been somewhat misinterpreted. The SEC emphasizes that for systems to be considered non-functional and therefore exempt from securities laws, there must be no central party involved.

Pump.fun's buybacks are decided and carried out by a company operating the platform, which raises questions about its status as a functional system.