The highly-anticipated Dec. 17 airdrop by the popular non-fungible token (NFT) project, Pudgy Penguins, has led to a significant drop in its native token’s value. The PENGU token, which trades on Solana, has lost over 50% of its value since its debut at a market capitalization of around $2.8 billion.
Understanding the Airdrop
The Pudgy Penguins team has distributed approximately half of PENGU’s total supply of nearly 89 billion tokens to community members as part of their airdrop initiative. This distribution is comprised of two main groups:
- NFT Holders: Around 26% of the total supply, or approximately 23.4 billion tokens, were allocated to NFT holders who have demonstrated proof of ownership on the Ethereum network.
- Community Members: The remaining tokens were distributed to community members as part of the project’s airdrop initiative.
Market Capitalization and Floor Price
The PENGU token has seen a significant drop in its market capitalization, falling from $2.8 billion at its debut to less than $2 billion according to data from CoinGecko. This decline is reflected in the floor price of the NFTs associated with the project.
- Pudgy Penguins: The floor price for a Pudgy Penguin NFT on OpenSea, an NFT marketplace, is currently over 16 Ether (ETH), or approximately $64,000.
- Lil’ Pudgys and Pudgy Rods: These NFTs are trading at floor prices of around 1.7 ETH and 0.7 ETH, respectively.
PENGU’s Role in Governance
The Pudgy Penguins team has not announced a specific use case for PENGU tokens, but they are expected to play a role in the project’s governance according to Bybit. This suggests that the token will be used to facilitate decision-making and voting within the community.
Background on Pudgy Penguins
Launched in 2021, Pudgy Penguins is a collection of 8,888 NFTs, each representing a unique image of the brand’s iconic penguins. The project has since launched other NFTs, including Lil’ Pudgys and Pudgy Rods.
- Pudgy Penguins: This collection features 8,888 unique penguin images.
- Lil’ Pudgys: A collection of 22,000 baby penguins.
- Pudgy Rods: Penguin-themed fishing rods.
Impact on the NFT Market
The drop in PENGU’s value has significant implications for the NFT market as a whole. The project’s popularity and market capitalization have made it one of the most valuable NFT collections, rivaling CryptoPunks.
- CryptoPunks: Launched in 2017, CryptoPunks is one of the oldest and most valuable NFT collections.
- NFT Market: The Pudgy Penguins’ airdrop has had a significant impact on the NFT market, with many collectors and investors taking note of the project’s value.
Conclusion
The Pudgy Penguins’ native token, PENGU, has seen a significant drop in its value following the project’s Dec. 17 airdrop. The distribution of tokens to community members and NFT holders has led to a decline in market capitalization and floor price. However, the role of PENGU tokens in governance and their potential impact on the NFT market make them an interesting development to watch.
Related Articles
- Pudgy Penguins CEO Unfazed by SEC Actions Against NFT Sector: The CEO of Pudgy Penguins has expressed confidence in the project’s future despite recent regulatory actions against the NFT sector.
- Lucrative NFT Collections: Several NFT collections have seen significant gains in value, including CryptoPunks and other popular projects.
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