$PENGU Token Launch, Pudgy Penguins Price Collapses

The launch of $PENGU, a cryptocurrency token tied to the Pudgy Penguins NFT collection, created a buzz in the crypto and NFT markets.

However, the excitement was short-lived, as both the token and the associated NFTs experienced significant price declines shortly after the launch. Within a day, $PENGU’s value plunged by over 50%, whilst the floor price of Pudgy Penguins NFTs dropped by more than half.

The rollout of $PENGU was intended to reward NFT holders and expand the Pudgy Penguins ecosystem. Instead, it triggered a wave of sell-offs that significantly impacted both the token and NFT valuations.

What led to Pudgy Penguins price drop?

The $PENGU token was launched on the Solana blockchain, distributed through an airdrop to Pudgy Penguins NFT holders and community members. Its debut generated intense trading activity, with trading volumes exceeding $2 billion on the first day.

Within 24 hours, $PENGU’s price fell from its opening value to approximately $0.033, a decline of over 50%. Prior to the token’s release, the floor price of Pudgy Penguins NFTs surged to 36 ETH as buyers sought to qualify for the airdrop. However, following the token’s decline, the NFTs’ floor price plummeted to around 16 ETH. This sharp drop coincided with a wave of selling activity, as some holders opted to exit their positions soon after the airdrop was completed.

Whilst the $PENGU launch successfully garnered attention and trading volume, its aftermath underscores the challenges of maintaining sustainable value in the volatile crypto and NFT markets.