PUMPAI

September 19, 2025 at 10:30

PumpFun Stream Frenzy: Risks of Token Fees and Creator Payouts

The PumpFun streaming scene is surging again after a recent update called Dynamic Fees, which pays token creators ten times more in fees. A streamer with around 100 viewers can now earn thousands from the fees on their token, and the platform itself has begun to outperform peers on several metrics, including streamer payouts. This surge is driven by the fact that creators can monetize quickly on PumpFun, something that would take a typical Twitch streamer months or years to achieve. For example, a streamer named MangoGirl reportedly earned $30K in 10 days by streaming on PumpFun. However, there are clear red flags about holding tokens tied to streamers. With a market cap around $5 million, creators capture most of the fees, incentivizing streamers to keep prices low to maximize earnings. This creates a poor, fragile model that could lead to a rug risk as the token’s value becomes unsustainable. Past narratives have included projects like $BAGWORK (DEX), $STREAMER (DEX), and $MITCH (DEX), which pumped to $40-50M FDV and have since fallen to $3-4M. PumpFun pays out millions daily to content creators, with beginners often receiving more. There are many stories of ordinary people—drivers, seniors—making significant sums, though scammers and low-quality streamers have also appeared. For those who flip on-chain tokens, using platforms like Axiom can simplify execution. Did you participate in the sale? 😎 DoubleTop — more than crypto

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Analysis

The narrative centers on a monetization loop where token creators are heavily incentivized by Dynamic Fees, effectively transferring value from token holders to early or high-visibility streamers. This raises sustainability concerns: if creator payouts dominate FDV, price appreciation may lag or reverse once fees cool, inviting a potential rug-like dynamic. The mix of real earnings for ordinary users and a high-risk structure creates a conflict between short-term liquidity and long-term price stability. The presence of past pump tokens that collapsed after rapid inflations (BAGWORK, STREAMER, MITCH) suggests a pattern worth watching, especially as daily outflows or token unlocks could pressure price. On-chain activity via a platform like Axiom could facilitate entry and exit, but it also concentrates risk among early investors and top streamers. In short, the upside hinges on continued fee flow and platform growth, while the downside is the potential for market dilution, misaligned incentives, and a rug risk if creator payouts outpace token economics.

Recommendation

Treat this as a high-risk, high-reward setup. If you’re already exposed, consider trimming exposure or setting strict stop-losses tied to price and FDV milestones. For new entrants, wait for clearer signs of sustainable revenue beyond initial hype, such as independent audits, transparent tokenomics, and longer-term streamer growth metrics. Monitor daily fee outflows, creator payout concentration, and any regulatory scrutiny around marketing to retail investors. Use caution with on-chain flipping; prefer safer routes or avoid staging new positions until there’s a more robust, transparent economic model.

Disclaimer

The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.