Why did the PENGU token face sell pressure worth hundreds of millions of USD immediately after the TGE? What caused the massive sell-off!?

Immediately after the airdrop was made available to Pudgy Penguins NFT holders, the PENGU token saw a sharp decline of over 50% within the first four hours of trading. Upon launch, the token price rose to $0.068 but quickly dropped to $0.031 due to intense selling pressure from those who received the airdrop.

A total of 15.18 billion PENGU, equivalent to 17.1% of the total supply, was claimed by approximately 775,700 wallet addresses. However, the current number of holders has dropped to just 382,700, indicating a significant sell-off of tokens shortly after the project enabled token claims and trading on exchanges.

During the peak period from 8:00 PM to 12:00 AM on December 17, the token claim volume saw a sharp increase, with over 2.4 billion PENGU claimed per hour. The number of participants claiming the airdrop also peaked at 160,000 during this timeframe before gradually declining afterward.

Data on token distribution shows that the majority of users received small amounts: 63% claimed between 1,000 and 5,000 PENGU, 18% received between 5,000 and 10,000 PENGU. Only a very small percentage, less than 2%, received more than 50,000 PENGU. This indicates that tokens are primarily distributed among small-scale holders, leading to early profit-taking behavior and creating significant selling pressure on the market.

Post-airdrop behavior shows clear diversification: 50% of users chose to hold their tokens, 30% sold immediately on decentralized exchanges (DEX), and 20% moved their tokens to centralized exchanges (CEX). Although over half of the claimed tokens have not been sold, the selling pressure from the remaining group has still dominated the market, causing PENGU's price to drop by more than 50% from its peak.

The trading data during the peak hours from 8:00 PM to 12:00 AM on December 17 reveals that selling significantly outweighed buying:
Over 2 billion PENGU were sold per hour.A total of 111,000 sellers compared to 59,000 buyers, indicating substantial selling pressure driven by profit-taking.Among the top 1,000 claimers, 35% sold their entire claimed tokens, while only 30% chose to hold onto all their received tokens.

Not only has the PENGU token been negatively impacted, but the floor price of the Pudgy Penguins NFT collection has also experienced a sharp decline. The NFT's floor price dropped from 33 ETH to 16 ETH, losing half of its value. As a result, Pudgy Penguins has fallen to third place in the NFT market capitalization rankings, making way for Bored Ape Yacht Club, which maintains a floor price of 18.89 ETH.

The PENGU airdrop recorded a trading volume of over $425 million within the first 4 hours. However, rapid profit-taking sentiment and a lack of confidence in long-term growth prospects have driven both the token and the Pudgy Penguins ecosystem into a downtrend.
Thus, Pudgy Penguins has not escaped the common pattern observed among major NFT projects when launching their tokens. Previously, NFT projects like Milady Maker, DeGods, and BAYC experienced similar declines in both token and NFT prices in the short term.

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With the new crypto-friendly administration, could SOL, XRP, and DOGE be the next altcoins to have ETFs established in 2025?

Bloomberg analyst Eric Balchunas expects the market to see a series of altcoin ETFs approved, with these new funds launching in waves throughout 2025 rather than all at once

Optimism regarding the approval of crypto ETFs has surged following Donald Trump's victory in the November presidential election and the announcement of Gary Gensler's resignation as Chairman of the U.S. Securities and Exchange Commission (SEC).
Under Gensler's leadership, the SEC maintained a strict stance on digital assets and crypto-based financial products. Even as major financial institutions like BlackRock launched spot Bitcoin ETFs and attracted tens of billions of dollars in investment, Gensler remained firm in his views.
Many analysts believe that with Gensler stepping down and a new leader taking over the SEC, the likelihood of approving crypto ETFs will increase. Bloomberg analyst James Seyffart suggested that the combined Bitcoin and Ethereum ETFs from Hashdex, Franklin Templeton, and Bitwise could be among the first to receive approval.
Meanwhile, altcoin ETFs such as those for SOL and XRP may have to wait until the new SEC administration takes over before they are seriously considere

Besides BTC, ETH, SOL, and XRP, James Seyffart also believes that LTC and HBAR could be approved sooner. The reason is that the SEC has never classified LTC and HBAR as securities, which could help them avoid facing strict legal hurdles.
However, Seyffart also acknowledged that he is uncertain whether investor demand for these ETFs would be strong enough to drive their launch.

Earlier, Nate Geraci, President of ETF Store, stated that it is highly likely that Solana ETFs will be approved by the end of next year. This indicates that the market continues to closely monitor the SEC's policy developments and the potential changes under the new leadership.

Eric Balchunas previously shared: 'What may seem like a joke today could become tomorrow's ETF.'
Eric is implying that even assets like Dogecoin (DOGE), which were once considered a joke, could become part of an official ETF. He believes that in the current market environment, any asset with sufficient investor demand has the potential to become an ETF.

i think someone will try to file for a DOGE ETF. If you think that’s far-fetched, I don’t see it that way.
--- Balchunas stated ---

Since their approval in January 2024, the Net Asset Value (NAV) of the spot Bitcoin ETFs has reached approximately $1.373 billion, with total net inflows into the funds now at $35.962 billion. The market capitalization has reached $120 billion, with total assets under management of 1,135,284 BTC.
The Ethereum ETFs currently manage assets of around $10 billion, with total trading volume reaching $670 million.
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