The Fat Penguin $PENGU coin plummeted 50% after its listing.
The much-anticipated Fat Penguin NFT (Pudgy Penguins) airdrop took place last night (12/17), but it encountered a disastrous market performance after listing.
According to (Cointelegraph) reports, at the initial listing, the market value of Fat Penguin $PENGU coin reached 4.3 billion USD, but within just a few hours, it shrank to about 2 billion USD; CoinMarketCap shows that the highest price of $PENGU coin after listing soared to around 0.07 USD, but it is currently worth only 0.03 USD, a drop of over 50%.
In the on-chain trading market, due to lower liquidity, the $PENGU coin once skyrocketed to 80 USD but quickly fell back to 0.03 USD, resulting in extreme volatility.
Image Source: GMGN, $PENGU coin was once quoted at 80 USD on GMGN.AI tools.
This plunge may be related to large holders who received the airdrop selling off en masse. It is understood that Fat Penguin allocated about half of the 89 billion $PENGU coins to the community, of which approximately 26% can be obtained by NFT holders.
Although the official application of $PENGU coins has not yet been announced, some exchanges predict that it may become the governance token for the Fat Penguin ecosystem.
The Fat Penguin NFT surged to 36 $ETH before the $PENGU listing.
Fat Penguin is an NFT project launched in 2021, with a total of 8,888 items. According to OpenSea data, before the $PENGU coin was listed, the floor price of a Fat Penguin NFT had soared to 36 ETH, valued at about 140,000 USD.
In addition to the original Fat Penguin NFT, the team also launched other NFT series, including the 'Lil' Pudgys' baby penguins with a total issuance of 22,000 and the 'Pudgy Rods' themed around penguin fishing rods. Holders of these NFTs can claim $PENGU coins.
However, after the Fat Penguin airdrop, a massive wave of selling occurred. As of the time of writing this morning, the floor price of Fat Penguin NFT was about 17 ETH (approximately 61,000 USD), with around 5,000 unique wallet holders.
Image Source: OpenSea, the floor price of Fat Penguin NFT dropped 50% after the airdrop.
Traders accidentally entered a pool with insufficient liquidity, turning 300,000 into 100.
The Fat Penguin airdrop has attracted much attention, mainly because each NFT holder's potential earnings could be substantial. Previously, a netizen analyzed that each person could receive benefits valued between 31,000 to 61,000 USD, potentially becoming the largest airdrop wealth event since the Hypeliquid airdrop.
However, before the airdrop started, a trader's 300,000 TWD turned into about 100 TWD.
According to (CoinPost) reports, some traders attempted to trade before the official release of $PENGU, but accidentally entered a trading pool with extremely low liquidity.
A trader invested about 10,000 USD in wrapped Solana trying to exchange for $PENGU, but ultimately received coins worth less than 5 USD.
Professionals pointed out that this situation primarily stems from trading bots known as 'Snipers' and traders who accidentally stepped into a trap by entering early.
Some people find the contract address before the token release and quickly establish liquidity pools. Snipers and fast traders usually invest large amounts of capital before the token release, impacting the market. Due to extremely low liquidity, even a small trading volume can cause significant price fluctuations, and these traders become victims of inaccurate pricing before listing.
Image Source: CoinPost, a trader accidentally entered a $PENGU pool with insufficient liquidity, turning 300,000 TWD into 100 TWD.
Fat Penguin airdrop controversy: maliciously damaging toy packaging to steal the QR Code.
The Fat Penguin airdrop controversy doesn't end here; Mask Network founder Suji Yan also exposed a shocking incident.
He pointed out that in a store in New York, some crazy cryptocurrency speculators maliciously damaged the packaging of the Fat Penguin physical toys and took the QR Code to seize the airdrop qualification.
Suji Yan criticized this as theft and called on the crypto community to jointly condemn such unethical behavior. He emphasized that these toys were meant to bring joy, but were destroyed by some speculators, which completely contradicts the original intention of the toys.
Image Source: Suji Yan, the founder of Mask Network, revealed that someone vandalized the packaging of the Fat Penguin toy at a store and stole the QR Code.
[Disclaimer] The market carries risks; investments should be made with caution. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions presented herein fit their specific circumstances. Invest at your own risk.
'After the airdrop, a massive sell-off! The Fat Penguin PENGU coin plummeted 50%, with Snipers turning 300,000 into 100.' This article was first published in 'Crypto City'.
