BlockBeats reported on Sept. 8 that trader Bonk Guy said the market is seriously underestimating PONS buybacks, while strong buying could continue to appear on every pullback.
In his post, Bonk Guy said PONS revenue has kept rising in recent days. For most of the past week, daily revenue stayed above $1.3 million to $2 million, and for seven consecutive days, daily revenue did not drop below $1.1 million.
Buyback wallet nears $3 million
He said the PONS buyback wallet has now accumulated nearly $3 million. Those funds are set to be used to repurchase PONS through a TWAP, or time-weighted average price, strategy. He also said fee inflows to the buyback wallet are currently replenishing the balance faster than the funds are being spent.
According to Bonk Guy, 100% of the fees generated by PONS are directed to buybacks and token burns.
He says effective market cap is below FDV-based valuation
Bonk Guy argued that PONS’ effective market capitalization may be materially lower than what its fully diluted valuation suggests. Based on a price of about $0.736 at the time of his post, he estimated the FDV-based market cap at roughly $736 million. But since about 30% of the token supply has been bought back and burned through fees since launch, he said the effective market cap is closer to $515 million.
Robinhood Chain share and token issuance hit highs
He also pointed to PONS’ market share on Robinhood Chain, which he said reached a record high of about 80% yesterday. For most of the past week, that figure remained in the 75% to 80% range.
Platform token issuance also hit a record, he said, with a single-day peak of 28,560 tokens launched. Over the past 24 hours, about 27,600 new tokens went live on the platform.
Bonk Guy said PONS is benefiting from growth in the Robinhood Chain ecosystem and has established itself as the chain’s main launchpad.
Compares PONS with PUMP
He said PONS currently has several factors in its favor: daily revenue above $1 million to $2 million, nearly $3 million in buyback funds, about 30% of supply already burned, no VC unlock pressure, and support from the early community. He compared PONS with PUMP and said its current effective market cap still looks attractive.
Bonk Guy added that his quantitative trading network from traditional finance has also started paying attention to PONS. He called it "the most tradable asset of this cycle" and said he expects continued buying on market pullbacks, while also seeing room for its market capitalization to reach the multi-billion-dollar range.