Fat Penguin Native Token 'PENGU' Experiences Major Drop After Launch

The well-known NFT project Fat Penguin (Pudgy Penguins) launched its native token 'PENGU' on December 17, with an initial market capitalization of up to $2.8 billion. However, within hours of its market debut, it faced a significant drop, with its market cap shrinking to under $2 billion, a decline of over 50%.

According to CoinGecko data, after PENGU was listed on Solana, its price fell from $0.068 to $0.05164 within about 10 minutes, and as of the time of writing, the price was approximately $0.03127.

Foreign media outlet Cointelegraph reported that the Fat Penguin official team has not clearly stated the actual use cases for PENGU, only mentioning that it may be used for project governance. The high speculative behavior in the market regarding PENGU, as well as the lack of clear value support, have become the main reasons for the drastic price fluctuations.

According to on-chain data, one wallet address sold 169 million PENGU shortly after the airdrop, cashing out about $8.7 million, which further accelerated the price decline. Community analysis shows that most users who received the tokens chose to cash out immediately, resulting in significant selling pressure in the market.

In addition, PENGU attracted high attention when it was listed on the Binance exchange, with the price initially surging briefly, but short-term speculators quickly sold off, causing the price to drop sharply. Some community members pointed out that the circulating supply of PENGU has accounted for 70% of the total supply, reducing the token's scarcity and leading more users to choose to sell their holdings.