The freshly introduced governance and utility token of the beloved NFT brand, Pudgy Penguins, known as PENGU, saw its price plummet by 60% after it was listed shortly after becoming available on top-tier exchange platforms.
The launch of PENGU by Pudgy Penguins took place on the Solana blockchain this Tuesday, following a December 5 update from the team. Announced by CEO Luca Netz, the token initially supported Ethereum and plans were set for broader integration with Abstract Chain.
Traders rushed to offload their new tokens swiftly after acquisition, resulting in rapid profit-taking. Such sharp market movements are frequently observed with airdrops, driven by lack of lasting demand.
Airdrop Madness
Major cryptocurrency platforms such as Binance, OKX, Bybit, and KuCoin quickly added PENGU to their lists after its initial debut. Despite initial enthusiasm, the token's price spiraled downwards, influencing the Pudgy Penguins NFT collection too. CoinGecko's insights indicate that PENGU initially traded at about $0.068 when first listed, but soon nosedived to nearly $0.031 due to fierce selling pressures.
Currently, PENGU’s valuation is around $0.027, marking a sharp 60% decrease within just a day.
The token's market capitalization fell dramatically from an early value of $4.3 billion to about $1.6 billion, coinciding with a $2 billion trading volume within 12 hours of its unveiling. This volatility was heightened as traders aimed for quick profits, dumping tokens shortly after purchase.
During this period, the base price for Pudgy Penguins NFTs also plummeted by more than half, decreasing from around 30 ETH (close to $120,000) to about 15.9 ETH soon after the airdrop, before seeing a slight recovery to 16.4 ETH.
PENGU Price
Preceding the PENGU token release, the floor price for the NFTs broke the $100,000 mark, peaking at an unprecedented $102,600, and even overtaking Bitcoin’s price of $101,000 at that moment.
Last week's peak positioned it second among NFT collections, narrowly trailing CryptoPunks. However, with the recent downturn, it's now the fourth-largest collection, surpassed by Infinex Patrons, Bored Ape Yacht Club (BAYC), and CryptoPunks.
Inside the Pudgy Penguins community, the airdrop stirred varied reactions. Numerous NFT owners reported difficulties in claiming their PENGU tokens, with allegations of receiving fewer tokens than expected.
Cashing In
Technical issues plagued the website. Users reported crypto wallets pointing out potential security issues with the site, and heavy traffic added strain, potentially causing display problems.
There were reports of transaction mishaps too. Solana network constraints might have forced larger token claims into multiple transactions, leading to user confusion and contributing to a negative sentiment regarding the token's introduction.
The swift shedding of tokens and ongoing price downturn have sparked debates about the future sustainability of both PENGU and the associated Pudgy Penguins NFTs, as many investors seem preoccupied with short-term gains rather than long-term holding.
The challenges surrounding the PENGU token draw parallels with the previous experiences of ApeCoin (APE).
APE, introduced as an ERC-20 token via a significant airdrop to BAYC and Mutant Ape Yacht Club (MAYC) holders, also witnessed a sharp decline of around 94% from its high, as investors cashed in amidst initial excitement.
In the latter part of October, Yuga Labs unveiled ApeChain—an Ethereum Layer 3 network aimed at boosting the scalability of its metaverse endeavor, Otherside.
Following this news, APE's value shot up dramatically, closing near $1.50, which was a 71% climb on launch, with another 15% rise soon after, according to CoinGecko.
Yet, the token remains 94% below its highest-ever price of $26.7 achieved over two years back. Extreme losses like these are not uncommon when the market is caught up in speculative frenzy.
Nicholas Say, originally from Ann Arbor in Michigan, has spent considerable time traveling, lived in Uruguay for several years, and currently resides in the Far East. His writings are widely circulated online, focusing primarily on realistic development and cutting-edge technological advancements.
