If you’ve been keeping an eye on the meme coin scene, you’ve probably heard about the buzz around $PUMP, the token powering pump.fun. Recently, a detailed thread by Simon on X (@simononchain) caught the attention of crypto enthusiasts, breaking down why $PUMP might be undervalued. Posted on July 15, 2025, the analysis dives into the token’s buyback program and stacks it up against DeFi heavyweights like Jupiter, Raydium, and Hyperliquid. Let’s unpack this step by step and see what it means for investors.

The Buyback Buzz

Simon’s thread kicks off with exciting news: the Pump team has started buying back $PUMP tokens on the open market. With 33% of the token supply circulating, this move could be a game-changer. The analysis estimates that token holders are set to receive daily buybacks of $538,000 (assuming a 25% revenue share based on 180-day trailing numbers). That translates to a whopping $196.6 million annually flowing back to holders. For a meme coin, that’s a bold statement!

The current valuation sits at a $6 billion fully diluted valuation (FDV) and a $2.12 billion market cap. These numbers might sound steep, but the earnings multiples tell a different story. The market cap-to-earnings ratio is 10.78x, and the FDV-to-earnings ratio is 30.51x over 180 days. Compared to peers—Jupiter (14.17x and 32.33x), Raydium (13.09x and 27.08x), and Hyperliquid (26.78x and 80.24x)—$PUMP looks like it’s trading at a discount.

Why the Discount Might Be a Steal

So, why is $PUMP seemingly undervalued? Simon points to several factors. First, the token’s supply dynamics are locked tight, with ICO participants facing sell pressure but no new supply hitting the market soon (unless an airdrop happens). This scarcity could drive price discovery, especially with a $2 billion war chest and potential catalysts like the rumored Axiom acquisition. Plus, the team’s strategic moves—like clawing back market share from Raydium—suggest they’re not resting on their laurels.

The thread also hints at growth potential. With that hefty war chest, Pump could deploy funds to boost its ecosystem, potentially pushing the valuation higher. Simon’s bullish take? The market might be sleeping on $PUMP, and its “shiny new object premium” could lead to a significant re-rating in the coming weeks.

The Counterarguments

Of course, it’s not all smooth sailing. A reply from @Rendoshi1 highlights a potential flaw: using 180-day trailing numbers might overstate $PUMP’s strength. The chart they shared shows Pump losing over 50% of its market share to a competitor, LetsBonk, suggesting the token’s dominance might be fading. This raises a valid question: are the buyback numbers sustainable if revenue streams dry up?

Another angle to consider is the lack of utility. Meme coins like $PUMP often rely on hype rather than governance rights or revenue sharing, which could cap long-term growth. Still, Simon’s optimism shines through, with a playful nod to the ticker itself: “The ticker is literally $PUMP.”

What This Means for You

For blockchain practitioners and meme coin fans, this analysis offers a lot to chew on. If you’re thinking of jumping in, the attractive valuation and buyback program might tempt you. But it’s worth watching how Pump handles competition and whether those profit estimates hold up. As always in crypto, do your own research—Simon himself throws in an “NFA” (not financial advice) disclaimer!

We’ll keep you posted on $PUMP’s journey right here at meme-insider.com. What do you think—undervalued gem or overhyped risk? Drop your thoughts in the comments!