Written by: Sleeping in the Rain

Let me mention three points that I am quite bullish on:

1. Pudgy Penguins survived a series of events, including team changes and new team FUD, and they are doing well. The key lies in the team's strong self-sustaining ability—making money through a series of operations like selling toys using the Penguin IP (toys sell very well), ensuring the project's long-term operation, such as launching the metaverse and issuing tokens, which are the results of its operations.

It should be noted that after Blur captured users' minds, many NFT projects declined due to 'losing royalty income'. This issue caused a lot of disputes at the time. You need money to get things done; it's very difficult to do things without money. Isn’t the Ethereum Foundation also selling $ETH to get things done? (manual dog head), the Ethereum Foundation is in the gutter.

The team is the core of a project's continuous development and expansion. The new Penguin team has proven itself—self-sustaining + creating new expectations for the market (drawing a bigger pie).

2. $PENGU Valuation

Now we can completely treat $PENGU as a memecoin—a meme of an NFT IP, which is about the feeling. I see many people also treat $PENGU as a meme, comparing it to projects like $DOGE, $MEME, and $SHIB. But considering its upcoming Abstract L2, perhaps we should treat it as a Layer2 Ticker.

Abstract is built on the ZKSync ZK Stack framework, and the mainnet launch should be in January 25. The feature of Abstract is Native Account Abstraction. Simply put, users can create and use wallets with social information like email. The Penguin team hopes to turn Abstract into a consumer application chain (friends who have seen my previous tweets should know I am optimistic about this concept).

Another point is that Abstract will distribute the revenue from the on-chain sequencer to token holders who actively participate in governance, and the tokens involved in governance and dividends will likely be $PENGU. Token holders participating in governance will have the right to direct the future token emissions to a specific ecological project.

Currently, some projects have confirmed they will deploy after Abstract's mainnet launch.

It is worth mentioning that the Penguin team will achieve the circulation of $PENGU between Abstract and the Solana ecosystem through LayerZero.

However, considering the initial cold start and subsequent development, Abstract should also have its own token in the future. $PENGU is likely to become a medium for users to obtain Abstract tokens, for example, staking to accumulate points, just like Blur - Blast. Initially, Abstract will be governed through $PENGU, and later by Abstract tokens and $PENGU holders together. (I haven't found a very definitive statement about the Abstract token here; if you know where it is written, or if I misunderstood, please feel free to share and correct me)

By the way, the background of the investors is also quite good.

3. Most of the airdrop recipients have already sold their chips. The general process is as follows: wash the chips, absorb the chips, pump the price, and then sell.

Now let’s discuss two points that are relatively bearish ⬇️

Now: The overall market is not doing well, and as we enter the Christmas - New Year season, the overall market is quite weak; now is not a good time to buy coins. However, this period usually gives us a bottom.

Future: When Abstract's mainnet goes live, Pudgy Toys players will receive an airdrop of $PENGU, which will create some new selling pressure. I don't think the impact will be significant.

If you like $PENGU and want to buy it, it's best to wait for the market to stabilize + $PENGU to level out. The expectation is that Abstract may have a connection with $PENGU. If there is no connection, for short-term holders, selling is a better choice; for long-term holders, we can only hope for Abstract's future performance.

DYOR