PENGU, the newly launched token from the Pudgy Penguins NFT collection, went live today (17) with an airdrop to eligible recipients. However, intense selling pressure caused the price of the PENGU token to drop 35% shortly after its launch.
In the first hour of trading, PENGU volume soared to $474 million. Here’s what to know about the launch, exchange listings, and how the market is responding to the airdrop.
PENGU launch sees massive sales pressure
A few weeks ago, the Pudgy Pengu team revealed that they would be launching a token before the end of the year. This left the market at large speculating as to when this would happen. But yesterday, December 16, Binance announced that the crypto exchange would make the PENGU token available for spot trading today (17).
This development generated excitement in the crypto community as the PENGU token was launched and distributed part of its supply to the community. Specifically, PENGU was launched with a total supply of 88.88 billion tokens.
Of this total, 25.9% was allocated to the Pudgy Penguins NFT community, while another 22% was reserved for the Solana and Ethereum communities. The Pudgy Penguins project team received 17%, subject to a one-year lock-up period and a three-year vesting period. Additionally, 12.35% is allocated to liquidity pools.
Pudgy Penguins Token Market Capitalization. Source: CoinGecko
However, unlike Binance’s recent listings that have driven up the prices of several tokens, PENGU’s market cap has dropped from $4.32 billion to $3.07 billion at the time of writing.
The token’s price also dropped from $0.068 to $0.043. According to Nansen, this drop in value could be linked to increased selling pressure from airdrop recipients.
As seen below, the volume sold since the cryptocurrency’s launch clearly exceeds the number of transactions that involved its purchase. Should selling pressure increase, the altcoin’s price could fall significantly below $0.043.
Pudgy Penguins Token Transactions. Source: Nansen
Pudgy Penguins floor price follows token direction
Before today's PENGU token airdrop and launch, the minimum price of Pudgy Penguins NFTs reached a record high of 34.80 ETH, which is worth over $100K.
This has made the project one of the most expensive NFT collections. However, in the last 24 hours, the minimum price has dropped by 43.60% while trading at 18.50 ETH.
Minimum Price for Pudgy Penguins NFTs. Source: CoinGecko
Meanwhile, Lookonchain revealed that some traders profited from the price of the PENGU token. One trader, for example, bought $5.36 million worth of tokens and sold them for $13.72 million in just 20 minutes.
However, such rapid gains may not be repeated in the short term, with the cryptocurrency’s price expected to continue its decline potentially, especially as another exchange, OKEx, lists it.
The article PENGU Token Falls 35% After Airdrop Sale appeared first on BeInCrypto.
