Pump provides income opportunities for small creators that were previously only available to the top 1% of creators on Twitch.
Author: Kunal Doshi
Compiled by: Deep Tide TechFlow
Recently, there has been a lot of discussion about CCM (Deep Tide Note: creator capital market, related to the content creator economy), so I calculated some data on creator income comparing @pumpdotfun with @Twitch. Pump is not just competing with Twitch; it is also capturing market share from Twitch.
Creator Income
Creators on Twitch earn money through subscriptions and ads. Subscription fees are $4.99, $9.99, or $24.99 per month, with creators and Twitch each taking 50%. The average cost per thousand ad impressions is $3.50, with creators receiving 50% to 70% of the ad revenue. In practice, this means small streamers can earn only a few hundred dollars a month, medium streamers can earn between $5,000 and $30,000, while top streamers can earn over $100,000 a month.
Pump has completely disrupted this model. Creators no longer earn commissions through subscriptions and ads; instead, they earn transaction fees through their tokens. In the early stages (with a market cap of $88,000 to $300,000), the transaction fee rate is about 0.95%, which gradually decreases to 0.05% as the market cap exceeds $20 million.
Just yesterday, 9,000 wallets claimed $2.8 million in creator fees. This means that each creator can earn about $300 per day on average, which could amount to about $9,000 per month if sustained.
Looking at the 10 creator tokens on Pump's homepage, most have already generated substantial daily earnings. On Twitch, reaching six-figure earnings requires over 10,000 concurrent viewers. In contrast, on Pump, creators can achieve similar income levels through smaller communities.
Market Valuation
From a valuation perspective, @Twitch is valued at $45 billion in October 2024, with revenue of $1.8 billion that year, corresponding to a valuation multiple of 25 times. According to @pumpdotfun based on its August data, its valuation multiple is close to 14 times.
More importantly, there is the incentive mechanism. Early creators on Pump can receive up to 80% of the fees, and as they grow, the platform gradually increases the commission rate. This is precisely where Twitch falls short, and it is why Pump appears so disruptive.
Core Competitiveness
Pump offers income opportunities for small creators that were previously only available to the top 1% of creators on Twitch. If even a portion of Twitch's creator community migrates to Pump, the entire streaming economy could be completely reshaped. Moreover, creators from TikTok and YouTube may also be part of this migration, which significantly increases future growth potential.
Sustainable Flywheel
The biggest question is sustainability. Pump's growth depends on how creators use the fees they earn. If they reinvest their income into their tokens or better content, it can drive the flywheel effect.
We also need to see more live viewers to attract more top streamers. Currently, it feels more like a speculative play rather than true content consumption, but this is a promising start. Cheers to Pump!
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