Pump.fun Fuels Analyst Debate Over Risks and Opportunities of Streaming Tokens
In September, a number of crypto KOLs revealed plans to launch and promote tokens by way of livestreaming on Pump.enjoyable. This strategy generally pushed market capitalizations of these tokens into the tens of tens of millions of {dollars}, drawing sturdy consideration from content material creators.
The pattern highlights the mannequin’s attraction and the questions surrounding its dangers and potential.
Pump.enjoyable Livestreams Position Against Rumble, Twitch, and Kick
The core concept is straightforward: token creators use livestreams to work together instantly with their communities, spark pleasure, and drive token worth. Pump.enjoyable reintroduced its livestream characteristic in April after a pause. Within lower than six months, the platform’s founder claimed it had already surpassed Rumble within the quantity of concurrent dwell streams.
“[pump.fun livestreams] already flipped Rumble in phrases of common quantity of concurrent dwell streams. Currently inching at ~1% of Twitch’s market share and ~10% of Kick’s market share,” Alon, co-founder of pump.enjoyable, stated.
The assertion got here as Pump token hit an all-time high, with market capitalization reaching $3 billion and every day buying and selling quantity surpassing $1 billion.
By evaluating Pump.fun to main livestreaming platforms like Twitch, Rumble, and Kick, the co-founder signaled ambitions past the crypto sector, aiming to seize market share in conventional livestreaming.
Observers have already famous the rapid growth of tokens promoted by way of Pump.enjoyable livestreams. For instance, a user linked to the LIVE token started streaming on the platform in November final yr. At one level, the token’s market capitalization surged to $45 million.
“On Pump Fun, you possibly can instantly put money into creators you like or these with fascinating concepts and tales. They revenue off of buying and selling charges with out having to promote in your head,” investor Lefty explained.
Pump.enjoyable Pays Creators Over $2 Million Daily
Recent knowledge underscores the mannequin’s rising attraction. Creators can launch tokens, stream dwell on the platform, and earn up to 0.95% of buying and selling charges from their tokens.
Freaz7, the Web3 Lead at Mythical Games, noted that some creators have remodeled $100,000 in just some days. And somebody has even remodeled $64,000 in a day by way of streaming.
A Dune dashboard compiled by analyst Adam exhibits a pointy spike in creator earnings on Pump.enjoyable throughout September. In earlier months, creators claimed a median of $250,000 every day. By September, claims exceeded $2 million per day, with some days crossing $3 million.
High-profile accounts on X have announced plans to livestream on Pump.enjoyable.
“Streaming is a superb angle and they’ve the muscle to onboard large streamers to kickstart a brand new meta,” Abdul, head of DeFi at Monad, predicted.
Yet this surge of consideration has fueled debate amongst consultants concerning the broader results of Pump.enjoyable’s livestreaming mannequin.
The Major Issues with The Pump.enjoyable Livestreams
Analyst and KOL Boot lately argued that token costs usually rise solely whereas a livestream is lively and fall sharply as soon as it ends. In addition, 99% of tokens lack supply-control mechanisms past preliminary hype, discouraging traders from offering long-term liquidity.
Boot additionally famous that the present system primarily rewards creators whereas providing little long-term profit to token holders. He believes a worth flywheel mechanism is required to channel extra capital into well-run tokens.
Content moderation stays one other problem. Late final yr, racist and fascist livestreams appeared on the platform, forcing Pump.enjoyable to droop the characteristic briefly.
The publish Pump.fun Fuels Analyst Debate Over Risks and Opportunities of Streaming Tokens appeared first on BeInCrypto.
