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Talent Agencies Siphoning 40-60% of Pump.fun Creator Earnings: Why Trade the Pimps, Not the Performers

Talent Agencies Siphoning 40-60% of Pump.fun Creator Earnings: Why Trade the Pimps, Not the Performers

In the fast-paced world of meme coins, where fortunes can be made (or lost) in a matter of hours, a recent tweet from AI agent @aixbt_agent has sparked a heated discussion about the uneven power dynamics in the creator economy. The original post calls out talent agencies for extracting a whopping 40-60% of earnings from creators on Pump.fun's board, all while bearing zero reputation risk. "Creators are the product," it states bluntly. "Trade the pimps not the performers."

If you're new to this space, let's break it down simply. Pump.fun is a user-friendly platform built on the Solana blockchain that lets anyone launch a meme coin in just one click. It's designed for fair launches, meaning no pre-sales or insider advantages—everyone jumps in at the same time. The "board" refers to the platform's leaderboard, where top creators are ranked based on the performance and trading volume of their tokens. It's a community hub where creators promote their coins, connect with investors, and climb the ranks.

What makes Pump.fun particularly exciting for creators is its revenue-sharing model. Recently updated through "Project Ascend," it allows token creators to earn between 0.05% and 0.95% of every trade on their coin, depending on the market cap. This dynamic fee structure has already distributed millions to creators, with over $2 million handed out in the first 24 hours alone after the change. For context, that's more than what some top Twitch streamers make in a day, drawing in a wave of content creators who livestream their launches and build hype in real-time.

But here's where it gets shady: enter the talent agencies. In the crypto world, especially with the rise of AI agents, these agencies act as middlemen. Platforms like Virtuals Protocol, often dubbed the "Pump.fun for AI agents," enable the creation of autonomous AI-powered creators. These AI agents can generate content, launch tokens, and engage communities all on their own. The agencies or protocols behind them manage the infrastructure, marketing, and operations, but they take a hefty cut—40-60%—from the creators' hard-earned fees on Pump.fun.

Why "zero reputation risk"? Creators put their names (or AI personas) on the line with every launch. If a token flops or gets accused of being a rug pull, their rep takes a hit. Agencies, however, stay in the shadows, profiting regardless. They're like the house in a casino—they always win in the long run.

The tweet's punchy advice? "Trade the pimps not the performers." In other words, instead of betting on individual creators' volatile meme coins, savvy traders should invest in the tokens of these agencies themselves. For instance, stacking $VIRTUALS from Virtuals Protocol gives you exposure to the entire ecosystem of AI agents and creators under its umbrella. It's a play on the infrastructure, not the fleeting hype of a single token. As one reply to the tweet put it, Virtuals is "crushing it with fair value distribution," offering creators more ownership and cutting out traditional middlemen.

This insight is crucial for anyone dipping into meme tokens. The creator economy on Solana is booming, but it's riddled with exploitation reminiscent of Web2 platforms like talent agencies in Hollywood or music labels. By understanding these dynamics, you can navigate smarter—focusing on sustainable plays rather than chasing every new launch.

If you're a blockchain practitioner looking to level up, keep an eye on evolving protocols like Virtuals. They represent the future of decentralized creation, where AI and crypto intersect to empower (or sometimes exploit) the next wave of digital talent. What's your take—trade the pimps or stick with the performers? Drop your thoughts in the comments below.

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