Original title: Introducing PENGU: The Pudgy Penguins Token

Original author: Joel Agbo

Original source: https://www.coingecko.com/

Compiled by: Daisy, Mars Finance

What is PENGU, the Pudgy Penguins token?

PENGU is the official Pudgy Penguins token, set to launch for the first time on Solana in late 2024.

Key Points

  • PENGU is the official token of the Pudgy Penguins NFT series, which contains 8,888 unique and adorable penguin cartoon images.

  • The Pudgy Penguins NFT series was originally launched on the Ethereum blockchain and has developed into one of the largest NFT projects by market cap. It has recently surpassed BAYC to become the second largest NFT project by market cap.

  • PENGU will launch on the Solana blockchain, aiming to expand the project's community and attract new users. There are plans for multi-chain deployment, extending to other blockchain networks including Ethereum and Abstract.

Pudgy Penguins, one of the largest NFT series based on the Ethereum blockchain, will launch its native token - PENGU. While Pudgy Penguins is not the first major NFT project to launch a native token, it has weathered the 'NFT winter' and ultimately became the second largest NFT project by market cap, only behind CryptoPunks.

With its strong global community and adorable characters made into toys, Pudgy Penguins brings its brand into the wider world beyond the blockchain. We are excited to see what PENGU will bring to the Pudgy Penguins community and the future beyond that.

What is PENGU?

PENGU is the native token of the Pudgy Penguins NFT series, and its token name pays homage to the community's affectionate term for their Pudgy Penguins NFTs as 'Pengus.' According to the project, PENGU is set to launch on the Solana blockchain later in 2024 as part of the plan to expand its community and further increase the influence of Pudgy Penguins, allowing everyone to connect with these adorable penguins.

Although the exact utility of the PENGU token has not been disclosed, it is expected to facilitate community expansion, project growth, member rewards, and project governance. There is a significant anticipation for the upcoming token, with pre-market trading data on Whales Market showing that the total trading volume of the PENGU token has exceeded $389,500 at the time of writing.

PENGU Token Economics

According to the official release from Pudgy Penguins, the total supply of PENGU is 88,888,888,888 tokens. These tokens will be minted on the Solana blockchain during the token generation event (TGE).

According to the chart above:

  • 25.9% will be reserved for the Pudgy Penguins community, which may include Pudgy Penguins and Lil Pudgy holders, as well as holders of other Pudgy assets like PenguPins (commemorative non-transferable tokens) and Pudgy Rods.

  • 24.12% of the total supply will be allocated to other communities to scale the Pudgy Penguins community, with an expected addition of five million new members.

  • 12.35% of the total supply will be used to create liquidity pools on decentralized exchanges and foster an active market for PENGU after its launch.

  • 17.8% of the total supply is allocated to the project team, starting to lock up after a 1-year period, lasting for 3 years.

  • 11.48% of the total supply is reserved for the company, which will be used for development and marketing efforts.

  • FTT (FTX exchange token) holders will also receive 0.35% of the total supply, and 4% of the token supply will be used for public benefit, in line with Pudgy Penguins' motto of 'spreading good vibes in the metaverse.'

Why is PENGU launching on Solana instead of Ethereum or Abstract?

Pudgy Penguins launched on the Ethereum blockchain in July 2021 and became a popular collection on that network. Its all-time high price reached nearly 23.9 ETH, and it is currently held by over 5,170 NFT collectors. For a project that has enjoyed such success on the Ethereum network, Pudgy Penguins' decision to launch its native token on the Solana blockchain has sparked controversy within its community (though it also plans to eventually launch on Ethereum).

According to the company behind Pudgy Penguins, Igloo, the choice to launch on Solana is to allow Pudgy Penguins' characters to reach new audiences.

Solana is also gaining popularity for its fast transactions and cost-effectiveness, and it can be argued that it is currently the busiest blockchain network. According to the chart from Artemis, Solana's daily active addresses and daily transaction volume far exceed those of Ethereum and its Layer 2 scaling solutions, indicating that launching the PENGU token on Solana will be able to reach a wider audience.

However, since the PENGU token will be launched on Solana, Pudgy Penguins holders will need to create a compatible wallet on Solana to claim the airdrop.

While the Pudgy Penguins team is building Abstract, a consumer-centric Layer 2 solution, it has not yet been released. By launching the PENGU token on Solana first, it can gain momentum before launching on Abstract, potentially providing a head start for the new network.

The continued popularity and persistence of Pudgy Penguins

Pudgy Penguins was originally launched in 2021 by Cole Villemain (Twitter alias ColeThereum) and three other colleagues. The idea was to create PFP NFTs representing happiness, community, and other social virtues. Unfortunately, due to failure to deliver on promises, widespread FUD, and allegations of an ongoing 'rug pull' scheme, the original founders were removed by the community in January 2022. In response, the collection's floor price fell below 0.6 ETH.

In search of new ownership, an auction was initiated, and Lucas Schneltzer, an entrepreneur from Los Angeles, purchased the project in April 2022 for 750 ETH ($2.5 million). He reorganized the project's leadership and announced new growth plans. Under the leadership of Luca Netz, Pudgy Penguins has seen significant recovery in floor price and overall brand image. Pudgy Penguins has also become the first Web3 brand to offer significant licensing opportunities to holders and launched Pudgy Toys in May 2023, which can be purchased in Target and Walmart stores as well as on Amazon.

Final Thoughts

After the launch of the PENGU token, Pudgy Penguins will join the ranks of most NFT projects (like BAYC) with a localized token to further expand its community. Existing Pudgy Penguin and Lil Pudgy NFT holders certainly have many anticipated airdrops. Combined with the current interest on Whales Market, many are looking forward to the new token. By launching on Solana, Pudgy Penguins will also bring its character IP to a whole new audience while leveraging the chain's speed and low transaction costs.

With the impending airdrop and token launch, it is important to be vigilant about counterfeit token releases and malicious airdrops. You can refer to our airdrop scam guide for more information on airdrop scams and how to protect your information. Be sure to do your due diligence before interacting with any platform or signing transactions. Additionally, please note that this article discussing the PENGU token and Pudgy Penguins NFTs is for educational purposes only and does not constitute financial advice. The projects mentioned are not endorsed.