Recently, the price of PENGU coin has finally stabilized, and NFT is also returning to a reasonable price range. I am also observing its price every day, looking for opportunities to buy it.

In fact, I sold all the Fat Penguin NFTs. During the last bear market, I saw the new team making continuous moves, so I bought a few at the bottom.

Then when it rose to 11 E, I looked at various data and made comprehensive considerations. I felt that without large-scale stimulation in the NFT sector, it would be difficult for Fat Penguin to rise rapidly again. So I sold it and pledged the E.

But at that time, I didn’t expect this wave of coin issuance at all, so I watched it quickly reach the final 30 E from 12 E, and then after the airdrop, it fell back to 17 E. It seemed like a dream.

Looking back at this wave of NFT market, although it is very similar to the Yuga period, in that both times the market experienced a correction after the blue-chip NFT issued coins, the underlying logic is different.

In the last round of NFT bull market, Yuga's coin issuance meant that the market would see the emergence of a second type of asset that could replace its value. As a result, the emergence of APE divided up many of the original NFT transactions, causing the team's royalty income to drop sharply, and the emergence of Blur also exacerbated this phenomenon.

In this round of the market, many NFTs have actually disappeared, but they have been stimulated to revive by speculators through the issuance of second-type assets.

A more obvious example is that after this round of Fat Penguin's pullback, Azuki's price remained strong, because most of the people who bought it in this round were betting on its expected coin issuance next month, while many NFTs that have no coin issuance plans or have already issued coins, their prices remain stable.

For real collectors, this means that after experiencing these callbacks, they can buy back these NFTs at a low price. And for the coins issued by them, after the market pricing is adjusted, they can also choose to get on board and gradually realize their expectations.

PENGU’S POTENTIAL.

In addition to Wintermute being the obvious market maker, Fat Penguin has already decided to create its own public chain, Abstract, which is a super application chain with itself as the main body. It is likely to be similar to Ronin and Hyperliquid, building its own infrastructure and then leveraging surrounding resources to join.

At present, it is not certain whether this chain will choose PENGU as Gas, but considering that PENGU has issued tokens on SOL with the support of the Solana Foundation, this may be a Solana Layer2 or compatible chain to facilitate the interoperability and transfer of assets.

According to the scripts of most previous platforms or public chains, if you want to attract people to use or pay attention, then raising the price of the governance coin is the best way. This is why I am looking for opportunities to get back on PENGU and the Fat Penguin NFT.

Previously, Ethereum VCs led by a16z rejected a $5 million deal to buy Fat Penguin at its most difficult time, and instead invested $50 million in Moonbirds at an extremely high price.

However, in this wave, Solana still lacks blue-chip NFT projects. The emergence of Fat Penguin and PENGU has filled this gap.

This also means that in the future, when the market hypes the Solana sector, PENGU can also be identified as the leader of NFT. If the public chain is finally confirmed to be based on Solana, it will also be the leader of SOL L2.

Therefore, I am willing to keep an eye on PENGU, which has a market value of 2 billion. From the perspective of the chain, the traders who airdropped the currency have not yet finished selling it. If the market falls again, I will buy it in batches and continue to support it.

The above are my observations and thoughts on PENGU. I hope they will be helpful to you.

AB KUAI DONG
December 20, 2024