The pump continued to fall sharply despite Pump.fun's $72 million buyback program, raising concerns that the "price support" was insufficient to stem selling pressure and that the risk of "profit-taking" was imminent.
During this cycle, the term "market manipulation" appeared frequently, as whales and market makers were accused of exploiting volatility to extract value. With PUMP, the paradox was that buying occurred, but prices continued to weaken and market confidence was tested.
- Pump.fun deployed $72 million in buybacks in October and November, but the price of PUMP still fell sharply.
- The pump fell 22.39% in October and 36.19% in November, equivalent to a cumulative decline of approximately 60%.
- In Q4, Pump.fun transferred 615 million USDC to Kraken, raising suspicions about the possibility of "profit-taking".
The pump fell sharply despite buybacks.
Despite the buyback program, the pump still plummeted in October and November, indicating that the price support was not strong enough to reverse the trend.
Amidst scrutiny over numerous projects regarding "market intervention," Pump.fun is cited as a case of supportive intervention, implementing buybacks to bolster the market. In October and November alone, the total value of these buybacks was reportedly $72 million.
However, price movements did not reflect expectations of stability. According to technical data on TradingView for the PUMP/ USDT pair , PUMP fell 22.39% in October and a further 36.19% in November. Cumulatively, the decline is approximately 60%, erasing previous gains when PUMP reached nearly $0.06 in Q3.
The divergence between buybacks and price has also Chia the market. One side sees this as a cyclical downturn, while the other believes it shows signs of entering a "profit-taking" phase. Regardless of the interpretation, the downward pressure from the pump is described as potentially continuing.
Large-scale USDC transfers to Kraken raise suspicions.
Pump.fun's transfer of 615 million USDC to Kraken in Q4, including a 50 million USDC transaction, has raised market concerns about profit-taking motives and the risk of further declines.
Pump.fun's macro picture is overshadowed by legal issues, undermining confidence. On the chain, the project transferred 615 million USDC to Kraken in Q4, including a single 50 million USDC transfer that was mentioned separately. This is a significant amount of cash flow and is often XEM as a "cashout" move.
If the description that the platform is implementing a buyback program using 100% of revenue is accurate, such a large influx of cash could be expected to bolster bullish sentiment, as holders believe the buyback mechanism will support the price. However, in reality, with weak technical indicators, these signals become "red flags," causing market caution.
Combined with the fact that the price didn't rebound despite the buybacks and the large flow of USDC onto exchanges, suspicions about potential "profit extraction" have been raised more frequently, including discussions on social media like this post: perspective on suspected "profit extraction" .
The risk of further declines may persist.
With both legal factors and cash flow signals unfavorable at the same time, PUMP faces the risk of further weakening if market sentiment continues to deteriorate.
Given the legal issues already discussed, any signs of "profit-taking" could further erode confidence. If the market continues to interpret large USDC transfers as a sign of profit-taking, selling pressure could increase, especially if prices have already fallen sharply without a clear reversal signal.
The key point is the mismatch: buybacks are announced on a large scale, but the technicals remain weak, while the inflow of money creates a contradictory narrative. In such situations, the common market reaction is to reduce risk exposure and wait for further data confirmation before re-entering the market.
Conclude
Pump.fun implemented a $72 million buyback in October and November, but PUMP still dropped approximately 60% in those two months, indicating that price support did not hold up as expected. Coupled with legal issues and the transfer of $615 million USDC to Kraken in Q4, the risk of further declines for PUMP may only be just beginning.
Frequently Asked Questions
Does a $72 million buyback guarantee that the price of PUMP will increase?
No. The data in the content shows that despite $72 million in buybacks in October and November, PUMP still fell 22.39% in October and 36.19% in November, indicating that the buybacks were insufficient to reverse the trend when selling pressure was high.
Why is transferring 615 million USDC to Kraken causing market concern?
Large-scale USDC transfers to exchanges are often interpreted as preparations for selling or profit-taking. Given PUMP's weak technical capabilities and ongoing legal issues, the move involving 615 million USDC (including a one-time transfer of 50 million USDC) could raise suspicions of "profit-taking."
How did the pump erase its previous gains?
The report states that PUMP declined by approximately 60% in October and November, whereas it had previously reached nearly $0.06 in Q3. This decline is described as having "erased" the gains from Q3.
