Originally published on: December 17, 2024
The highly anticipated launch of Pudgy Penguins’ native token, PENGU, has seen a dramatic drop of over 50% in the initial hours of trading following the NFT project’s much-talked-about Dec. 17 airdrop.
Out of the nearly 89 billion total PENGU tokens, approximately half have been distributed to the community members, with 26% allocated to NFT holders, as per details on the Pudgy Penguins’ website.
Initially valued at a market cap of around $2.8 billion, the PENGU token, which is tradable on Solana, has now plummeted to a market cap of less than $2 billion according to CoinGecko.
While the Pudgy Penguins team has not specified a specific use case for the PENGU tokens, there are expectations that they will play a role in the project’s governance, Bybit reported.
The Pudgy Penguins project, founded in 2021, consists of 8,888 unique NFTs showcasing various images of the iconic penguins associated with the brand.
Additionally, the project has introduced other NFT collections such as Lil’ Pudgys with 22,000 baby penguins and Pudgy Rods featuring penguin-themed fishing rods.
Owners of any of these NFTs are entitled to claim PENGU tokens by verifying their ownership on the Ethereum network, as stated by the Pudgy Penguins team.
On diverse NFT marketplaces, the floor price for a Pudgy Penguin NFT stands at more than 16 ETH (approximately $64,000) with distribution among nearly 5,000 unique wallets.
Prior to the introduction of PENGU, these NFTs were trading at a floor price of nearly 36 ETH on OpenSea, a popular NFT marketplace.
Meanwhile, Lil’ Pudgys and Pudgy Rods are currently being exchanged at floor prices of around 1.7 ETH and 0.7 ETH respectively on OpenSea.
Besides NFTs, Pudgy Penguins has also ventured into selling 1.5 million Pudgy-branded toys at retail giants like Walmart, expanding their brand beyond the digital realm.
Being one of the priciest NFT collections after CryptoPunks, the Pudgy Penguins’ success is on par with the iconic CryptoPunks collection launched in 2017, revered for trading at extravagant prices as high as $20 million per NFT.
With the NFT market booming, innovators and artists like those at Pudgy Penguins are seizing the opportunity to establish themselves as major players in the rapidly evolving digital art landscape.
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