Originally published on: December 17, 2024
The Pudgy Penguins’ very own PENGU token has taken a hit, experiencing a more than 50% drop in its value shortly after its launch following an eagerly awaited airdrop on Dec. 17.
With nearly 89 billion tokens in circulation, the project has allocated about half of the total supply to community members, reserving approximately 26% for NFT holders as outlined on the Pudgy Penguins’ website.
Initially valued at a market capitalization of $2.8 billion, the PENGU token traded on Solana saw a significant decline to below $2 billion, according to data from CoinGecko.
Although the Pudgy Penguins team has not specified a specific utility for the PENGU tokens, it is anticipated that they will play a role in the project’s governance, Bybit reported.
Despite the challenges faced by the PENGU token, the Pudgy Penguins project itself has been making waves since its launch in 2021. The collection of 8,888 unique NFTs featuring the brand’s beloved penguins has gained popularity. Additionally, subsequent NFT launches such as the Lil’ Pudgys and Pudgy Rods have further expanded the project’s reach.
Owners of any of these NFTs can claim PENGU tokens by proving ownership on the Ethereum network, according to the Pudgy Penguins team.
While the floor price for a Pudgy Penguin NFT stands at more than 16 EtherETH (around $64,000), the NFTs have been distributed across nearly 5,000 unique wallets. Prior to the debut of the PENGU token, the floor price was almost 36 ETH.
In contrast, Lil’ Pudgys and Pudgy Rods are currently trading at floor prices of approximately 1.7 ETH and 0.7 ETH on OpenSea.
Moreover, the Pudgy Penguins brand has extended beyond the digital realm, with 1.5 million Pudgy-inspired toys sold in major retail stores like Walmart, showcasing the project’s real-world impact.
Despite the challenges faced by the PENGU token, it remains a significant player in the NFT space alongside established collections like CryptoPunks, which have seen NFTs sell for millions of dollars.
As the market continues to evolve, the Pudgy Penguins project and its PENGU token are set to navigate these challenges and carve out their place in the dynamic world of NFTs.