Video | Weekly Market Analysis: When Live Streaming Meets Token Issuance, Pump.fun Is Rewriting the Rules of the Game

This analysis from PANews' "The Round Trip" video series examines how Pump.fun is revolutionizing token issuance by merging it with live streaming. The platform has seen explosive growth, with revenue surging from $0 to $100 million in 200 days.

Explosive Growth & New Model: Pump.fun's revenue grew eightfold after its launch, redefining token issuance through live streaming and a dynamic creator fee model.
Dynamic Fee Mechanism (Project Ascend): A key innovation allows creators to earn up to 0.95% in transaction fees, which decrease as a token's market cap grows. This drove a tenfold increase in creator fees and helped Pump.fun reclaim over 50% market share in Solana token issuance.
Livestreaming Flywheel Effect: The platform leverages the demographic overlap between Twitch viewers and crypto users. While some streamers use hype for short-term gains, the goal is to attract mature creators for higher-quality content.
Case Studies & Token Dynamics: Examples show both the volatility (e.g., BAGWORK Boys' rapid rise and fall) and positive use cases, like streamers using fees for charity. Data indicates livestreaming tokens have a higher success rate than typical memecoins.
Competitive Edge & Industry Impact: Pump.fun's crypto-native base creates a barrier for mainstream platforms. It is forming a new "creative capital market" that could fundamentally change trading, community building, and the live broadcast experience in crypto.

Original article: TheRoundTrip

Compiled by Yuliya, PANews

At the intersection of crypto and AI, the truly important stories often lie hidden beneath the noise. To uncover these overlooked truths, PANONY and Web3.com Ventures have partnered to launch the English-language video series "The Round Trip." Co-hosted by John Scianna and Cassidy Huang, this episode will focus on Pump.fun's innovative storytelling model, the commonalities between Twitch viewers and crypto users, and the flywheel effect of Pump.fun's livestreaming.

*Note: This video was released on September 20, and some data and dynamics may differ from the current situation.

TL;DR:

Pump.fun has experienced explosive growth : revenue went from $0 to $100 million in 200 days, and has since grown eightfold. Recently, through live streaming and a dynamic creator fee model, it has redefined token issuance and the creative capital market.
Dynamic Fee Mechanism (Project Ascend): Creators can receive transaction fees up to 0.95%, which gradually decreases to 0.05% as market capitalization increases. This has driven a tenfold increase in creator fees, increasing Pump.fun's market share from 35% to 53%, reclaiming its dominant position in Solana token issuance.
Livestreaming and User Profile : Twitch and crypto user groups have a high degree of overlap (primarily young and male), and Pump.fun connects the two through its livestreaming feature. While some low-quality streamers rely on gimmicks to attract attention, the team's goal is to attract mature creators and improve content quality.
Case in point : BAGWORK Boys used hype to drive their token's market capitalization to 50 million within a week, earning $270,000 in fees. However, the hype wasn't sustainable, and the market capitalization fell back to 4.5 million. Meanwhile, streamers like Mr. Kind and FTP are using their creator fees for charity, creating positive impacts.
Token and Trading Characteristics: Pump.fun tokens are highly volatile, but transaction fee buybacks have accumulated over $105 million, offsetting nearly 7% of the circulating supply. Data indicates that livestreaming tokens have a higher breakout rate than typical memecoins, fostering a closer community through interaction with real streamers.
Platform Strengths and Limitations : Pump.fun's crypto-native nature and user base create competitive barriers. Mainstream platforms like Twitch struggle to replicate its model due to educational costs and regulatory risks. While there are concerns about "casino culture" and ruggedness, its transparent on-chain fees and novel mechanisms offer the platform the potential to revolutionize the industry.
Industry Significance : Pump.fun is forming a "creative capital market" that combines creator economy and token issuance, which may change the model of trading, community building and live broadcast experience, marking a new stage in the crypto field.