The much-anticipated Dec. 17 airdrop by non-fungible token (NFT) project Pudgy Penguins has had an unexpected consequence: its native token, PENGU, is down more than 50% in the first hours of trading.
Airdrop Details
According to Pudgy Penguins’ website, approximately half of PENGU’s total supply of nearly 89 billion tokens has been distributed to community members. This allocation includes around 26% earmarked for NFT holders. The project has not announced a specific use case for PENGU tokens, but they are expected to play a role in the project’s governance.
Market Performance
Initially debuting at a market capitalization of around $2.8 billion, the PENGU token, which trades on Solana, has since dropped to a market cap of less than $2 billion, according to data from CoinGecko.
| Market Cap (Dec 17) | PENGU Token |
| — | — |
| < $2 billion | Down over 50% |
Pudgy Penguins Overview
Launched in 2021, Pudgy Penguins is a collection of 8,888 NFTs, each representing a unique image of the brand’s iconic penguins. The project has since launched other NFTs, including Lil’ Pudgys — a collection of 22,000 baby penguins — and Pudgy Rods, which depict penguin-themed fishing rods.
NFT Details
- Pudgy Penguins: A collection of 8,888 unique NFTs, each representing an iconic penguin image. As of Dec. 17, the floor price for a Pudgy Penguin NFT is more than 16 Ether (ETH), or approximately $64,000.
- Lil’ Pudgys: A collection of 22,000 baby penguin NFTs. Currently trading at a floor price of around 1.7 ETH, or approximately $6,800.
- Pudgy Rods: Penguin-themed fishing rod NFTs. Trading at a floor price of around 0.7 ETH, or approximately $2,700.
Retail Presence
Pudgy Penguins has also sold 1.5 million Pudgy-branded toys in retail stores such as Walmart, according to the project’s website.
Comparison with CryptoPunks
Among the oldest NFT collections, CryptoPunks — a collection of 10,000 NFTs launched in 2017 — have traded for upward of $20 million per NFT. As of Dec. 17, several CryptoPunks NFTs are listed for around $170,000.
| NFT Collection | Price Range |
| — | — |
| CryptoPunks (10,000) | Up to $20 million per NFT |
| Pudgy Penguins (8,888) | Over 16 ETH ($64,000) |
Conclusion
The Dec. 17 airdrop by Pudgy Penguins has resulted in a significant price drop for its native token, PENGU. While the project’s governance structure and use cases for PENGU tokens remain unclear, it is expected that they will play a key role in the project’s future development.
References
- CoinGecko: A platform providing real-time data on cryptocurrency market capitalization.
- OpenSea: An NFT marketplace where users can buy, sell, and trade unique digital assets.
- Pudgy Penguins Website: The official website of the Pudgy Penguins project, providing information on its tokenomics, governance structure, and retail presence.
Related Content
- Pudgy Penguins CEO Unfazed by SEC Actions Against NFT Sector: An article discussing the impact of regulatory actions on the NFT market.
- Lucrative NFT Collections: A guide to the most valuable NFT collections, highlighting their unique features and market performance.
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