The new digital currency PENGU from the “Pudgy Penguins” group has suffered a sharp decline in its value one day after its launch.
According to CoinGecko data, the price of the coin fell by 57.8% within 24 hours, reaching $0.02892.
The coin’s launch on December 17 saw 62.8 billion PENGU distributed to eligible NFT holders and team members.
Despite the initial surge that propelled the coin into the top 100 cryptocurrencies by market cap, it quickly lost more than 60% of its value, falling from $0.06845 to a low of $0.027.
The Pudgy Penguins NFT collection also fell similarly, with its base price dropping more than 48% in a single day, to 17.1 ETH (around $64,450), compared to its high of 36.33 ETH.
Despite this negative trend, trading activity on the group increased by 258%, recording a daily sales volume of $21.7 million, as some investors took advantage of the opportunity to buy these assets at low prices.
Common fluctuations after the free distribution process:
The sharp drop in the price of PENGU is not a new phenomenon; airdropped cryptocurrencies often experience similar fluctuations.
Observers point out that many beneficiaries are quickly selling their assets, leading to significant price volatility.
For example, ME and MOVE tokens experienced a similar pattern, with ME losing about 80% of its value after the airdrop.
Despite the decline, PENGU still has a market cap of nearly $2 billion, ranking 78th among the largest cryptocurrencies.
At the time of writing, the coin has shown some recovery, up 10.5% from its lows.