I want to first talk about three reasons why I am Bullish on this project:
1. Pudgy Penguins managed to survive a series of challenges, including team changes and being hacked, and is now developing very well. The key factor here is the team's strong self-generating ability—they make money with the penguin IP by selling toys and derivatives (the toys sell particularly well), ensuring the project can continue to operate. For example, their launch of the metaverse and issuing tokens are among the results of their sustainable operations.
To know, after Blur captured the market, many NFT projects collapsed because they lost royalty income. This has also sparked quite a bit of controversy. After all, you need money to get things done; without money, it's hard to promote project development. Isn't the Ethereum Foundation also selling $ETH to get things done? (Haha).
So, the team is the core of whether a project can develop in the long term. The new team of Pudgy Penguins has already proven itself, having both the ability to self-generate revenue and to bring new expectations to the market (like painting a bigger 'cake').
2. The potential valuation of PENGU
Now, we can consider $PENGU as a memecoin, similar to the meme of NFT IP. I've seen many people also regard $PENGU as a meme token, comparing it with projects like $DOGE, $MEME, and $SHIB. But considering its upcoming Abstract L2, we may need to reevaluate it and see it as a Layer2 token.
Abstract is built on the ZKSync's ZK Stack framework, with the mainnet launch expected in January 2025. One of its highlights is Native Account Abstraction, meaning users can create and use wallets through social information like email. The Penguin team hopes to develop Abstract into a consumer-facing application chain (I’ve mentioned before in my tweets that I’m optimistic about this concept).
Another highlight is that Abstract will distribute the income from on-chain sorters to token holders who actively participate in governance, and the tokens involved in governance and dividends are likely to be $PENGU. Token holders will have the right to decide the future emission direction of the tokens and can even direct funds towards certain ecological projects.
Some projects have already confirmed that they will deploy after Abstract's mainnet goes live.
A noteworthy point is that the Penguin team plans to achieve the circulation of $PENGU between Abstract and the Solana ecosystem through LayerZero.
However, considering the initial cold start and subsequent development, Abstract might launch its own token in the future. $PENGU could become a way for users to acquire Abstract tokens, such as accumulating points through staking, similar to the Blur - Blast model. Initially, Abstract may rely on $PENGU for governance, but later, Abstract token and $PENGU holders may participate in governance together. (Regarding the Abstract token, I haven't found particularly clear information; if you know where to find it, or if my understanding is incorrect, feel free to share and correct me.)
By the way, the background of the investors is also quite strong.
3. Most airdrop recipients have already sold their chips. The usual process is: first wash and absorb chips, then pull the price and sell.
Next, I will mention two relatively bearish points ⬇️
Current: The overall market situation is not good, especially with the arrival of Christmas and New Year holidays, the entire market's performance is weak, and now is not an ideal time to buy coins. However, this time usually brings us a bottom opportunity.
Future: When Abstract's mainnet goes live, players of Pudgy Toys will receive $PENGU airdrops, which may bring some selling pressure, but I don't think the impact will be too great.
If you really want to buy $PENGU, it's best to wait for the market to stabilize, or consider entering when the price of $PENGU becomes stable. Abstract and $PENGU are expected to have a certain correlation. If there is no correlation, it may be better for short-term holders to sell; but for long-term holders, they can only look forward to Abstract's future development.
DYOR
