In this article, we’ll answer your questions like, what is AMM in crypto and find out where market making takes place, how it works, and why it’s needed.
13.07.2022
A detailed analysis recently published on BraveNewCoin.com examines the phenomenon of Pump.fun ($PUMP), a platform that has redefined success in the crypto space with its staggering revenue figures. While acknowledging its market dominance, the report applies a professional analytical framework to explore a critical question: how effectively does this success translate into tangible value for new token holders? The analysis contrasts the $PUMP model with an emerging utility project, goodcryptoX ($GOOD), which offers a different approach to growth and revenue sharing.
The crypto market has evolved. The narrative has shifted from inflationary emissions to a demand for sustainable "Real Yield" models. Pump.fun is a prime example of a project generating real revenue. However, the new analysis argues that market participants must look deeper than just the top-line revenue number and assess the mechanics of how value is captured and distributed.
An Analytical Lens for Token Economics
To move beyond surface-level metrics, the analysis on BraveNewCoin.com utilizes a structured methodology developed by the analysts at CoinLaunch. This toolkit is designed to assess a token's long-term viability by examining the core mechanics of its economic model. Let's apply this professional lens to the assets in question.
A Closer Look at the $PUMP Model
When examined through this structured framework, several key characteristics of the $PUMP token become clear:
- Value Accrual & Sharing Mechanism 🟡: The model relies on an indirect approach. Revenue is used for token buybacks managed by the team, rather than being distributed directly to holders. While buybacks can support price, their effectiveness is subject to market conditions and timing.
- Token Growth Upside 🔴: With a reported Fully Diluted Valuation (FDV) exceeding $6.6 billion at launch, the mathematical potential for exponential price appreciation (e.g., 10x) is inherently limited. Large-cap assets typically offer more stability than explosive growth.
- Ecosystem Exposure 🔴: The platform's success is heavily concentrated on the meme coin narrative within the Solana ecosystem. This creates a dependency on a single, highly volatile market trend.
- Current Yield & Holder Risk 🔴: The model provides no direct yield (APY). Upside is purely speculative, based on price movement. This contrasts with models that provide a steady income stream from platform fees.
An Alternative Approach in Token Design: goodcryptoX ($GOOD)
The report then applies the exact same analytical lens to goodcryptoX ($GOOD), a project with a different design philosophy focused on utility and direct rewards.
goodcryptoX is an established platform with 400k users, now bringing its CEX-grade trading bots to the multi-chain DEX environment. Its tokenomics present a starkly different picture:
- Value Accrual & Sharing Mechanism 🟢: A direct model. 50% of all DEX trading revenue is distributed directly to $GOOD holders, creating a clear and transparent link between platform success and holder rewards.
- Token Growth Upside 🟢: $GOOD is launching with a low initial market cap and an FDV of just $25 million. This provides a significantly larger runway for potential price appreciation compared to a multi-billion dollar asset.
- Demand on Revenue 🟢: Initially, revenue will be shared among a small group of ~400 presale participants. This means early holders receive a more concentrated share of the rewards before the holder base expands.
- Current Yield & Holder Risk 🟢: The model offers a high potential yield (projected at ~100% APY based on historical volume) with no mandatory lock-up period, giving holders both income and flexibility.
Key Differences at a Glance
| Metric (CoinLaunch Framework) | $PUMP (The Established Giant) | $GOOD (The Growth-Focused Challenger) |
|---|---|---|
| Value Accrual Mechanism | 🟡 Indirect (Team Buybacks) | 🟢 Direct (50% Rev-Share) |
| Token Growth Upside (FDV) | 🔴 Limited (~$6.6B+) | 🟢 Significant ($25M) |
| Ecosystem Exposure | 🔴 Concentrated (Solana Memes) | 🟢 Diversified (Multi-chain Utility) |
| Current Yield | 🔴 None (Speculative Only) | 🟢 High Potential (~100% historical) |
What's the Bottom Line?
This comparison isn't about picking a "winner." It's about showing two very different ways a token can work. $PUMP is a bet on the continued success and hype of a market giant.
In contrast, goodcryptoX is for those who want a piece of the action from the ground up. Its model is built to share real profits directly with its community. In the end, it comes down to a simple choice: backing the established brand or getting in early on a project built for direct rewards.
To explore the complete data and in-depth analysis, read the original report on BraveNewCoin.com.
