Pump.fun Fuels Analyst Debate Over Risks and Opportunities of Streaming Tokens

In September, several crypto KOLs revealed plans to launch and promote tokens through livestreaming on Pump.fun. This approach sometimes pushed market capitalizations of these tokens into the tens of millions of dollars, drawing strong attention from content creators.

The trend highlights the model’s appeal and the questions surrounding its risks and potential.

Pump.fun Livestreams Position Against Rumble, Twitch, and Kick

The core idea is simple: token creators use livestreams to interact directly with their communities, spark excitement, and drive token value. Pump.fun reintroduced its livestream feature in April after a pause. Within less than six months, the platform’s founder claimed it had already surpassed Rumble in the number of concurrent live streams.

“[pump.fun livestreams] already flipped Rumble in terms of average number of concurrent live streams. Currently inching at ~1% of Twitch’s market share and ~10% of Kick’s market share,” Alon, co-founder of pump.fun, stated.

The statement came as Pump token hit an all-time high, with market capitalization reaching $3 billion and daily trading volume surpassing $1 billion.

By comparing Pump.fun to major livestreaming platforms like Twitch, Rumble, and Kick, the co-founder signaled ambitions beyond the crypto sector, aiming to capture market share in traditional livestreaming.

Observers have already noted the rapid growth of tokens promoted through Pump.fun livestreams. For example, a user linked to the LIVE token began streaming on the platform in November last year. At one point, the token’s market capitalization surged to $45 million.

“On Pump Fun, you can directly invest in creators you love or those with interesting ideas and stories. They profit off of trading fees without having to sell on your head,” investor Lefty explained.

Pump.fun Pays Creators Over $2 Million Daily

Recent data underscores the model’s growing appeal. Creators can launch tokens, stream live on the platform, and earn up to 0.95% of trading fees from their tokens.

Freaz7, the Web3 Lead at Mythical Games, noted that some creators have made over $100,000 in just a few days. And someone has even made over $64,000 in a day through streaming.

A Dune dashboard compiled by analyst Adam shows a sharp spike in creator earnings on Pump.fun during September. In previous months, creators claimed an average of $250,000 daily. 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.fun.

“Streaming is a great angle and they have the muscle to onboard big streamers to kickstart a new meta,” Abdul, head of DeFi at Monad, predicted.

Yet this surge of attention has fueled debate among experts about the broader effects of Pump.fun’s livestreaming model.

The Major Issues with The Pump.fun Livestreams

Analyst and KOL Boot recently argued that token prices typically rise only while a livestream is active and fall sharply once it ends. In addition, 99% of tokens lack supply-control mechanisms beyond initial hype, discouraging investors from providing long-term liquidity.

Boot also noted that the current system mainly rewards creators while offering little long-term benefit to token holders. He believes a value flywheel mechanism is needed to channel more capital into well-run tokens.

Content moderation remains another challenge. Late last year, racist and fascist livestreams appeared on the platform, forcing Pump.fun to suspend the feature temporarily.