In September, several Crypto Kols revealed plans to launch and promote tokens through live streaming on Pump.Fun. This approach has sometimes boosted the market capitalization of these tokens to tens of millions of dollars and attracted strong attention from content creators.
This trend highlights the appeal of the model and questions surrounding risk and potential.
Location of live streams for Pump.Fun Rumble, Twitch, and Kick
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The core idea is simple. Token creators use livestreams to interact directly with the community, inspire excitement and promote the value of the token. Pump.Fun reintroduced its livestream functionality in April after hiatus. Less than six months later, the platform founders claimed they were already outperforming the number of simultaneous live streams.
“(Pump.Fun LiveStreams) has already turned over in terms of the average number of concurrent live streams. It currently costs around 1% of Twitch’s market share and around 10% of Kick’s market share,” said Alon, co-founder of Pump.Fun.
The statement announced that pump tokens have reached an all-time high, market capitalization reaching $3 billion and daily trading volumes exceeding $1 billion.
By comparing Pump.fun to major live streaming platforms such as Twitch, Rumble and Kick, the co-founders aim to signal their ambitions beyond the Crypto sector and gain market share with traditional live streaming.
Observers have already noticed the rapid growth of tokens promoted through Pump.Fun LiveStreams. For example, users linked to live tokens began streaming on the platform last November. At one point, the token’s market capitalization skyrocketed to $45 million.
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“When it comes to pumping fun, you can invest directly in your beloved creators or people with interesting ideas and stories. They can profit from the trading fees without selling your head,” explained the investor lefty.
Pump.fun pays creators over $2 million each day
Recent data highlights the growing appeal of models. Creators can launch tokens, stream live on the platform, and earn up to 0.95% of trading fees from the tokens.
Freaz7, the Web3 lead at Mythical Games, said some creators have made more than $100,000 in just a few days. And someone is making more than $64,000 a day through streaming.
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The dune dashboard, edited by analyst Adam, shows a sharp surge in creator revenues on Pump.Fun during September. Over the past few months, creators have claimed an average of $250,000 each day. By September, the bill had exceeded $2 million per day, and one day over $3 million.
X’s famous account has announced plans to do a live stream on pump.fun.
“Streaming is a big angle and has the muscles to carry big streamers to kickstart a new meta,” predicted Abdul, head of defi at Monad.
However, this surge in attention has fueled discussion among experts about the broader impact of Pump.Fun’s live streaming model.
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Pump.Fun LiveStreams Key Issues
Analysts and Kol Boot recently claimed that token prices only rise while livestreams are usually active and fall sharply upon completion. Additionally, 99% of tokens lack supply control mechanisms beyond the initial hype, discouraging investors from providing long-term liquidity.
Boot also noted that the current system primarily rewards creators, while offering little long-term benefits to token holders. He believes that a valuable flywheel mechanism is needed to guide more capital into a well-running token.
Content moderation remains a different challenge. Late last year, a live stream of racist and fascist appeared on the platform, forcing Pump.fun to temporarily suspend functionality.
