Originally published on: December 17, 2024
Pudgy Penguins’ native token, PENGU, has taken a nosedive, losing over 50% in value within just hours of its highly-anticipated launch and airdrop on December 17th.
The project has distributed nearly half of PENGU’s total supply of almost 89 billion tokens to its community members, reserving about 26% for NFT holders, as revealed on the Pudgy Penguins’ website.
Initially valued at a market capitalization of around $2.8 billion, the PENGU token, which is traded on Solana, has since dwindled to less than $2 billion in market cap, as per CoinGecko data.
Although the Pudgy Penguins team has yet to specify a particular use case for PENGU tokens, it is anticipated that they will have a role in the project’s governance, according to Bybit.
Pudgy Penguins, launched in 2021, features a collection of 8,888 NFTs, each showcasing distinctive images of the brand’s beloved penguins. Moreover, the project has introduced additional NFT series, including Lil’ Pudgys and Pudgy Rods, attracting NFT enthusiasts and collectors.
Holders of any of these NFTs are eligible to claim PENGU tokens, provided they can prove ownership on the Ethereum network, as reported by the Pudgy Penguins team.
At present, the Pudgy Penguin NFTs are trading at a floor price exceeding 16 Ether (ETH), around $64,000, and distributed across nearly 5,000 unique wallets, according to OpenSea data.
Meanwhile, the Pudgy Penguins team has also made a mark in the physical toy market by selling 1.5 million Pudgy-branded toys in prominent retail stores like Walmart, adding another feather to their cap.
Despite the initial hype surrounding Pudgy Penguins and their NFT collections, the recent downturn in PENGU token’s value serves as a stark reminder of the volatile nature of the crypto market and NFT space. Investors and enthusiasts are keenly observing how the project navigates these challenges in the coming days.
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