Pudgy Penguins, the popular NFT project that has captured the hearts of crypto enthusiasts and art lovers alike, is entering the cryptocurrency space with a big splash. The project has announced the launch of its Solana-based crypto token, named $PENGU. This move aims to expand the Pudgy Penguins ecosystem, bringing additional utility and engagement opportunities to its dedicated community.

According to a statement released on the morning of December 6, the PENGU token will have a total supply of 88,888,888,888 tokens, distributed as follows:

  • 17.8%: Reserved for the project team, locked for one year, with gradual unlocking over the following three years.

  • 11.48%: Allocated to the corporate treasury, also locked for one year and gradually released over three years.

  • 12.35%: Set aside for liquidity purposes.

  • 4%: Designated for a public goods fund.

  • 4%: Allocated to a marketing fund.

  • 25.9%: Distributed to the Pudgy Penguins community.

  • 24.12%: Allocated to other communities, including Solana and Ethereum ecosystems.

  • 0.35%: Reserved for FTT holders.

In an interview with SolanaFloor, Pudgy Penguins CEO Luca Netz explained the project’s approach to token allocation, emphasizing fairness for new users joining the ecosystem. Netz stated:

“We could have launched the token to achieve a multi-billion-dollar valuation on day one… but we’re taking the opposite approach. We aim to roll this out with minimal media coverage to ensure the launch doesn’t come across as a cash grab.

I believe PENGU token holders will drive more demand for the project. If you look at data from the past 12 months, projects that pair tokens with NFTs have delivered superior performance, as they mutually positively reinforce each other.”

Over the past three years, Pudgy Penguins has become a symbol of success in the crypto space. With a highly engaged community, over 50 billion social media impressions, and more than 1.5 million plush toys sold across 10,000 global retailers, the project has solidified its place as a major player in both digital and physical markets.

However, the original NFT collection, limited to 8,888 units, has naturally constrained the project’s growth. The launch of the PENGU token aims to expand the ecosystem, reaching a broader audience both within and beyond the crypto space.

Despite the excitement, Pudgy Penguins has yet to announce specific details about the PENGU token’s release date, use cases, or distribution criteria. However, the project previously revealed in July 2024 that it raised $11 million to develop a Layer 2 solution called Abstract. It’s speculated that PENGU could become the primary currency for this platform, playing a pivotal role in its ecosystem.

One potential challenge lies in the fact that Abstract is reportedly being built on Ethereum’s ZKsync Layer 2 solution, while PENGU will launch as a token on Solana. How these two networks will integrate remains to be seen.

Notably, Pudgy Penguins isn’t the first NFT project to launch a token. The renowned Bored Ape Yacht Club (BAYC) released ApeCoin (APE), which later became the native currency for its Layer 2 platform, ApeChain, launched in October.

Market Performance and Community Response

As of December 6, Pudgy Penguins is the third-largest NFT collection in the cryptocurrency market, boasting a market capitalization of $618 million, according to NFT Price Floor. The floor price of Pudgy Penguins NFTs surged by 20% on the morning of the announcement, reaching 17.98 ETH, the highest since its all-time high of 19.81 ETH in February 2024.

This price jump reflects growing excitement and anticipation within the Pudgy Penguins community and the broader NFT market.

Conclusion

The launch of PENGU marks a significant milestone for Pudgy Penguins, enabling the project to extend its reach and foster greater engagement across crypto and non-crypto audiences. With strong community support and innovative plans, Pudgy Penguins is poised to continue shaping the future of NFTs and blockchain ecosystems.