From Twitch to Pump.fun: The Next Evolution of Live Streaming

Author: Mohamed Allam, Messari; Translated by: Jinse Caijing

Recently, Pump.fun live broadcast has welcomed a breakthrough for the first time. A token called Bagwork reached a market value of nearly 50 million dollars in just two days.

The duo from Bagwork is completely obsessed with the "decadence" of live streaming: running naked at a football game, getting tattoos when the market cap peaks, leaking Drake's songs, and playing with tricks that most people will never touch.

It is this chaos that makes Pump.fun stand out. It is an omnipotent platform with tremendous potential for creators. For the new generation of "fallen youths" who thrive on such content, it is a perfect stage.

Reality may be sad, but Pump.fun knows it well—this team is just in their twenties, and they know what the next generation wants.

The Bagwork team earned nearly $200,000 in creator commissions without selling any tokens. The model of Pump.fun allows creators to take a cut from each transaction, meaning they can make money without harming the interests of the community. This doesn't completely eliminate the phenomenon of "rug pulls," but with such earnings, the incentive mechanisms will change. From a game theory perspective, if streamers want to develop in the long term, they have more reason to continue attracting viewers and traders to use their tokens, thereby earning stable income.

The real challenge faced by Pump.fun is finding professional streamers, rather than those opportunists chasing quick money.

Objectively speaking: The income of the Bagwork team over two days is equivalent to what top Twitch streamers usually earn in a month. Pump.fun has broken this timeline, allowing creators to communicate directly with their audience without intermediaries. Streamers create, viewers trade, and everyone can earn rewards.

Live streaming is still in its infancy. Over the past decade, with streamers of "Fortnite" and "League of Legends" going live on Twitch, streaming has truly exploded. Pump.fun is trying to shorten the entire growth curve, aiming to achieve in one or two years what took Twitch a decade to build. The path forward is simple: attract the right streamers and maintain user engagement. If they can provide the right incentive mechanism, Pump.fun has the potential to become the largest consumer application in the cryptocurrency space. Otherwise, it may decline as quickly as it rose.