Article source: Sleeping in the Rain

Written by: Sleeping in the Rain

First, let me mention three points that I am quite Bullish about:

1. Pudgy Penguins survived after experiencing a change of teams and various fud about the new team, and they are doing well. The key is the team's strong self-sustaining ability — making money through selling toys and other operations leveraging the PENGU IP (the toys are selling very well), ensuring the project's long-term operation, such as launching a metaverse and issuing tokens, which is one of its operational achievements.

It should be noted that after Blur occupied users' minds, many NFT projects declined because they 'lost royalty income.' This matter also sparked a lot of disputes. Money is needed to get things done; without money, it is very difficult to operate. Isn't the Ethereum Foundation also selling $ETH to get things done? (manual dog head), the gutter Ethereum Foundation.

The team is the core of a project's continued development and expansion. The new team for PENGU has proven itself — self-sustaining and 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, that's the feeling. I've seen many people also treat $PENGU as a meme, comparing it to projects like $DOGE, $MEME, and $SHIB. However, considering the upcoming launch of Abstract L2, perhaps we should think of it as a Layer2 Ticker.

Abstract is built on the ZK Stack framework based on ZKSync, with the mainnet launch expected in January 2025. Abstract's feature is Native Account Abstraction. In simple terms, users can create and use wallets with social information like email.

Another point is that Abstract will distribute the income from on-chain sequencers to actively participating governance token holders. The tokens participating in governance and dividends are likely to be $PENGU. Governance token holders will have the right to direct the future token emissions to a specific ecosystem project.

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

It is worth mentioning that the PENGU 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, by staking to accumulate points, similar to Blur - Blast. Early on, Abstract will govern through $PENGU, and later governance will be shared between the Abstract tokens and $PENGU holders. (I haven't found a clear statement regarding the Abstract token; if you know where it is written, or if I misunderstood, please share and correct me)

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

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

Now let's talk about two more Bearish points ⬇️

Now: the overall market situation is not good. As we enter the Christmas - New Year season, the overall market is quite weak, and now is not a good time to buy coins. However, this period generally provides us with a bottom.

In the future: when Abstract's mainnet goes live, Pudgy Toys players will receive $PENGU airdrops, which may 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 there may be a connection between Abstract and $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