Why I Bought PUMP

(This is my own view, not financial advice. I could be wrong.)

A member asked me why I bought PUMP, the coin of Pump.fun, the memecoin launchpad on Solana. It sits in my Aggressive altcoins portfolio, and I'm still testing it. Here are my three reasons, the two risks I watch, and the numbers behind each one. PUMP is about $0.0041 as I write.

The first thing I look at is P/S, price vs sales: the coin's market value divided by the revenue the app earns in a year. In crypto people often call it P/F, price vs fees, because the fees users pay are the sales. Lower is better. A low P/S means the business earns a lot compared with what the coin costs. I only use the last 30 or 90 days, turned into a year. Last year's numbers come from a bear market and would tell us little.

PUMP is at 3.0×. That's the lowest of the exchange coins I follow, lower even than RAY, which just had a very strong month. In simple words: Pump.fun is rich.

And Pump.fun doesn't just keep that money. Since Apr 28 2026, a contract locks half of its revenue into buying PUMP on the open market and burning it, for one year. On that same day it also burned every PUMP it had bought back in the nine months before.

Put the two together: a business that earns a lot, and spends half of it buying its own coin. So the real money buying PUMP from the market is big. In the last 90 days it came to about $61.7M. That's more than RAY, CAKE, JUP and ASTER put together.

And the burn is real. You can see it in the supply itself. No new PUMP can ever be created, so the count can only go down:

PUMP still has inflation, because of the unlock (more on that below). But a burn this big can cancel part of it. That is my first reason.