Pudgy Penguins NFT surpasses Bored Ape in one month: A quick overview of what the PENGU token is

What is PENGU, the Pudgy Penguins Token?

PENGU is the official Pudgy Penguins token, which will be launched for the first time on Solana at the end of 2024.

Key Points

• PENGU is the official token of the Pudgy Penguins NFT collection, which consists of 8,888 unique and adorable penguin cartoon images.
• The Pudgy Penguins NFT collection was initially launched on the Ethereum blockchain and has grown to become one of the largest NFT projects by market capitalization. It recently surpassed BAYC to become the second-largest NFT project by market cap.
• PENGU will be launched on the Solana blockchain, aiming to expand the project's community and attract new users. There are plans for multi-chain deployment, extending to other blockchain networks including Ethereum and Abstract.

Pudgy Penguins, one of the largest NFT collections based on the Ethereum blockchain, will launch its native token – PENGU. Although Pudgy Penguins is not the first major NFT project to launch a native token, it has withstood the test of the "NFT winter" and ultimately became the second-largest NFT project by market capitalization, second only to CryptoPunks.

With its strong global community and those adorable characters made into toys, bringing the Pudgy Penguins brand into the broader world beyond the blockchain, we are excited to see what PENGU will bring to the Pudgy Penguins community and beyond in the future.

What is PENGU?

PENGU is the native token of the Pudgy Penguins NFT collection, and its name pays tribute to the community's nickname for their Pudgy Penguins NFTs, "Pengus." According to the project, PENGU will be launched later in 2024 on the Solana blockchain as part of the project's plan to expand its community and further grow the influence of Pudgy Penguins, allowing everyone to connect with these adorable penguins.

Although the exact utility of the PENGU token has not yet been announced, it is expected to facilitate community expansion, project growth, member rewards, and project governance. There is a lot of anticipation for the upcoming token, and pre-market trading on Whales Market shows that the total trading volume of PENGU tokens has already exceeded $389,500 at the time of writing.

PENGU Tokenomics

According to the official release from Pudgy Penguins, the total supply of PENGU is 88,888,888,888 tokens. These tokens will be minted on the Solana blockchain during the Token Generation Event (TGE).

According to the chart above:

• 25.9% will be reserved for the Pudgy Penguins community, which may include holders of Pudgy Penguins and Lil Pudgy, as well as holders of other Pudgy assets such as PenguPins (commemorative non-transferable tokens) and Pudgy Rods.
• 24.12% of the total supply will be allocated to other communities to expand the Pudgy Penguins community, with an expected addition of five million new members.
• 12.35% of the total supply will be used to create liquidity pools on decentralized exchanges and to foster an active market for PENGU after launch.
• 17.8% of the total supply is allocated to the project team, with a lock-up period starting after one year and lasting for three years.
• 11.48% of the total supply is reserved for the company and will be used for development and marketing efforts.
• FTT (FTX exchange token) holders will also receive 0.35% of the total supply, and 4% of the token supply will be used for public benefit, in line with Pudgy Penguins' motto of "spreading good vibes in the metaverse."

Why is PENGU launching on Solana instead of Ethereum or Abstract?

Pudgy Penguins was launched on the Ethereum blockchain in July 2021 and became a popular collection on the network. Its all-time high price reached nearly 23.9 ETH and is currently held by more than 5,170 NFT collectors. For a project that has enjoyed such success on the Ethereum network, Pudgy Penguins' decision to launch its native token on the Solana blockchain has sparked controversy within its community (although it also plans to eventually launch on Ethereum).

According to Igloo, the company behind Pudgy Penguins, the choice to launch on Solana was made to allow Pudgy Penguins characters to reach new audiences.

Solana has also become increasingly popular due to its fast transactions and cost-effectiveness, and arguably is the busiest blockchain network to date. According to the Artemis chart below, Solana's daily active addresses and daily transaction volume far exceed those of Ethereum and its layer-2 scaling solutions, indicating that launching the PENGU token on Solana will be able to reach a broader audience.

However, since the PENGU token will be launched on Solana, Pudgy Penguins holders will need to create a compatible wallet on Solana in order to claim the airdrop.

While the Pudgy Penguins team is building Abstract, a consumer-focused layer-2 solution, it has not yet been released. By launching the PENGU token on Solana first, it can gain momentum before launching on Abstract, potentially giving the new network a head start.

The Continued Popularity and Resilience of Pudgy Penguins

Pudgy Penguins was originally launched in 2021 by Cole Villemain (pseudonym ColeThereum on Twitter) and three other colleagues. The idea was to create PFP NFTs representing happiness, community, and other social virtues. Unfortunately, due to unfulfilled development promises, widespread FUD, and allegations of ongoing "rug pull" schemes, the original founders were ousted by the community in January 2022. As a result, the collection's floor price dropped to below 0.6 ETH.

In search of new ownership, an auction was held, and Lucas Schneltzer, a Los Angeles entrepreneur, bought the project in April 2022 for 750 ETH ($2.5 million). He restructured the project's leadership and announced new growth plans. Under Luca Netz's leadership, Pudgy Penguins has seen significant recovery in both floor price and overall brand image. Pudgy Penguins also became the first Web3 brand to offer major licensing opportunities to holders and launched Pudgy Toys in May 2023, which can be purchased at Target, Walmart, and Amazon.

Final Thoughts

After the launch of the PENGU token, Pudgy Penguins will join the ranks of most NFT projects (such as BAYC) with a native token to further expand its community. Existing Pudgy Penguin and Lil Pudgy NFT holders are certainly looking forward to the airdrop, and combined with the current interest on Whales Market, many are anticipating the new token. By launching on Solana, Pudgy Penguins is also bringing its character IP to a whole new audience while leveraging the chain's speed and low transaction costs.

As the airdrop and token launch approach, it is important to be vigilant for fake token launches and malicious airdrops. You can refer to our airdrop scam guide for more information on airdrop scams and how to protect yourself. Be sure to double-check before interacting with any platform or signing any transaction. You can also install a reputable security browser extension to enhance transaction security. Additionally, please note that this article discusses the PENGU token and Pudgy Penguins NFT for educational purposes only and does not constitute financial advice. The mentioned projects are not endorsed.