$PONS has dropped like this, is there a fundamental problem? Revenue has decreased by 80%, can the buyback still hold?
PONS fell from 0.97 to 0.41 in the past month. Since I mentioned holding it before, many friends have privately messaged me asking mostly the same question: is there a fundamental problem with the project?
First, let me explain myself. I started buying at 0.5 and kept buying up to now, currently at a loss. So I want to understand this issue more than anyone else. In the past few days, I have reviewed basically all the data I could find.
The fundamentals are not bad, but indeed not as good as they looked at the beginning of September. Everyone has seen the coin price, but there is a detail many people missed: PONS closed at 0.44 on September 1st, now it’s 0.41, which is actually only a 7% drop compared to a month ago. The feeling of continuous decline mainly comes from the spike to 0.97 on September 5th, and this past month has basically been a retracement.
Compared to September 1st, PONS’s daily transaction fees dropped from $4.56 million to $1.2 million, trading volume decreased by 80%, and daily newly issued coins fell from about 25,000 to less than 6,000. On September 3rd, it collected nearly $6 million in fees in one day, more than Pump and Hyperliquid, and the coin price at that time was calculated based on these figures. $HYPE
But the buyback is still ongoing. PONS’s rule is that 70% of the fees go to the coin issuers, 30% go to the protocol, and the protocol uses 80% of its share to buy back PONS, which is then immediately burned.
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