Not just a meme coin, three reasons to be optimistic about PENGU's future development

Pudgy Penguins has experienced team changes and market challenges, demonstrating strong survival capabilities. This article explores the potential and future development of the PENGU token, analyzing its unique value in the NFT space and the impact of the upcoming Abstract L2. This article is based on a piece written by Yuzhong Kuangshui, organized and translated by PANews. (Previous summary: $PENGU airdrop frenzy: one Pudgy Penguin NFT can claim over $80,000, Solana and Ethereum OG wallets can also claim) (Background information: Incredible! Pudgy Toys were stolen in large numbers due to the $PENGU airdrop, with QR codes found in New York) First, let me mention three points that make me quite bullish: 1. Pudgy Penguins has survived a series of events such as team changes and new team FUD, and it is thriving. The key lies in the team's strong self-sustaining capability—making money through selling toys and other operations leveraging the penguin IP (the toys are selling very well), ensuring the project's long-term operation. For instance, launching the metaverse and issuing tokens are some of the outcomes of its operations. It is important to note that after Blur dominated user mindshare, many NFT projects declined due to "loss of royalty income." This situation caused a lot of disputes. Money is essential to get things done; without it, it’s challenging. Isn’t the Ethereum Foundation also selling $ETH to fund activities? (manual dog head), the shallow Ethereum Foundation. The team is the core of a project's continuous development and expansion. The new penguin team has proven itself—self-sustaining + creating new expectations for the market (drawing a bigger pie). 2. $PENGU Valuation. Now, we can fully regard $PENGU as a memecoin—a meme of an NFT IP; that’s roughly the feeling. I see many people treating $PENGU as a meme, comparing it to projects like $DOGE, $MEME, and $SHIB. However, considering the upcoming Abstract L2, perhaps we should treat it as a Layer2 Ticker. Abstract is built on the ZKSync ZK Stack framework, with the mainnet expected to launch in January 2025. The feature of Abstract is Native Account Abstraction. Simply put, users can create and use wallets using social information like email. The penguin team aims to develop Abstract into a consumer application chain. Another point is that Abstract will distribute the revenue from on-chain sequencers to token holders who actively participate in governance, and the tokens participating in governance and dividends are likely to be $PENGU. Token holders participating in governance will have the right to direct future token emissions to a specific ecological project. Some projects have already confirmed they will deploy on the Abstract mainnet after its launch. It’s worth mentioning that the penguin team will achieve the circulation of $PENGU between Abstract and the Solana ecosystem through LayerZero. However, considering the early cold start and subsequent development, Abstract is likely to have its own token in the future. $PENGU may very well become a medium for users to obtain Abstract tokens, like staking to accumulate points, similar to Blur - Blast. Initially, governance through $PENGU will happen, and later it will be jointly governed by the Abstract token and $PENGU holders. (I haven’t found a very clear statement regarding the Abstract token; if you know where it’s written or if I misunderstood here, feel free to share and correct me) By the way, the investor background is also quite good. 3. Most airdrop recipients have already sold their chips. The general process is as follows: wash trades, absorb chips, pump and dump. Now let’s talk about two relatively bearish points: Currently: The overall market is not doing well. As we approach the Christmas and New Year market, the overall market is weak, and now is not a good time to buy coins. However, such times generally provide us with a bottom. In the future: When the Abstract mainnet goes live, Pudgy Toys players will receive $PENGU airdrops, which will create some new selling pressure. I think the impact won’t be significant. If you want to buy $PENGU, it’s best to wait until the market stabilizes + $PENGU levels out. The expectation is that Abstract may have interactions with $PENGU. If there is no interaction, selling is a better option for short-term holders; for long-term holders, all they can do is hope for Abstract's future performance. DYOR Related Reports: Pudgy Penguin NFT floor price hits new highs! Starting from $122,000, the community is shouting that the PENGU airdrop is at least $30,000. "Pudgy Penguins" announces the launch of the token $PENGU and the public tokenomics, FTT holders can also receive airdrops, NFT floor prices soar. "Not just a meme coin, three reasons to be optimistic about PENGU's future development." This article was first published on BlockTempo (BlockTempo- the most influential blockchain news media).