The token has been online for a while, and to be honest, it has received mixed reviews. The extremely high market value has caused some secondary players to be deeply trapped after buying it, but also because of the extremely high airdrop scale, many friends have made a windfall. What kind of project is this, and should I buy it and hold it? The boss will give you an analysis!
1. Project Introduction
$PENGU is the native crypto token launched by the famous NFT project Pudgy Penguins. This token$PENGU was released on the Solana blockchain. Unlike other similar IP-evolved MEME tokens, it did not go through the pump process and was able to log in to major exchanges such as Binance and OY as soon as it went online, which shows that the strength behind it is extraordinary!
When mentioning $PENGU, one must talk about its underlying Pudgy Penguins NFT series, which issued a total of 8,888 unique cute penguin cartoon images. After the official announcement of the native cryptocurrency, it became one of the top two projects in the NFT market. This project has a total of 34 billion GIF views, with 1.6 million Instagram followers, 500,000 TikTok fans, and physical toys of the IP are sold on major e-commerce platforms.
Transitioning from an NFT series to a native crypto token resembling MEME, this project can be said to be leading the trend, bringing the IP of Pudgy Penguins closer to fan interaction and providing airdrop value to NFT holders, bringing a different scenery to the crypto market.
2. Token Economics
As the first NFT tokenized project, its token economics shares many similarities with MEME. However, based on the natural characteristics of NFTs, the token economics offers some different perspectives.
The specific economic information of the token is as follows:
Total token supply: 888.89 (hundred million pieces)
Current total market cap: 2.2 billion
Initial circulation rate: 79.75% (the non-100% release is also a significant difference from MEME)
In the token allocation structure, 24.1%: Distributed to other community members, covering 5 million wallets, many friends have received thousands of tokens!
>25.9%: Distributed to members of the Pudgy Penguins community, covering 15,000 people, with NFT holders making up a large portion!
>23.7%: Distributed to the team for development, locked for one year, $PENGU, can it drive the NFT meme wave? It will not circulate in the market for the time being.
>12.3%: Distributed to market makers to provide liquidity for the market; this proportion is quite large.
>4%: Allocated for public welfare, which is also the social benefit of such MEME projects.
>3%: Used for promotional marketing
Overall, the token distribution is quite reasonable; the tokens currently circulating in the market are mainly through airdrops, and the liquidity allocation is relatively high, ensuring good market liquidity depth.
3. Summary
This token is actually quite good in many aspects, but the only issue is that its market cap is currently severely overestimated. The NFT series has a market cap of around 500-600 million, while the token's current market cap has reached 2.2 billion, which is quite serious and does not align with reality. So it seems that there will be a long and significant correction period until the value truly returns. However, the market has been a bit explosive recently; when you think it will drop, it unexpectedly rises, so it is not suitable for shorting unless you have a good cost advantage.
Moreover, those who understand the current crypto market should know that with the rise of MEME, NFTs have inevitably become yesterday's news and are on the decline. The launch of $PENGU may be the first token in crypto to transition from NFT IP to MEME. This move may pioneer a new gameplay; why can't the IP of MEME be an NFT that already has a large fan base? Theoretically, any quality NFT can issue its own MEME token, thus experiencing a second spring. A brand new MEME concept narrative 'NFT + MEME' may be beckoning us, which is the greatest significance of this project!
