Pudgy Penguins’ PENGU Token Drops 50% After Airdrop

Pudgy Penguins’ $PENGU Drops: NFT Floor Price Tumbles

Pudgy Penguins: PENGU Drops By Over 50% Post-Launch

The NFT project’s new token $PENGU, that trades on Solana, has had a disheartening debut in the early hours of trading. 

Price Drop Post-Airdrop

The native token is down by over 50% in the first hours of trading itself, post the much-anticipated December 17 airdrop. The project has distributed around half of its total PENGU supply of about 89 billion tokens. It gave away this to its community members, while 26% were earmarked for NFT holders.

The token initially debuted at $2.8 billion market capitalization. However, later the $PENGU token dropped to less than $2 billion. These native tokens of Pudgy Penguins are expected to have a role in the governance of the project.

NFT Collections

Pudgy Penguins, launched in 2021, comprises 8,888 NFTs, where each NFT represents a unique image of the penguins, the brand’s icon. Later, the project went further, launching several other NFTs including Lil’ Pudgys and Pudgy Rods. While the former is a collection of 22,000 baby penguins, the latter depicts penguin-themed fishing rods.

More On The Price Drop

After the $PENGU airdrop to Pudgy Penguins NFT holders went live, the token value fell to $0.031 from $0.068 amid heavy selling pressure. This decline in the price of token coincided with a sharp decline in the Pudgy Penguins NFT prices too. This is because the airdrop’s falling value triggered a decline in the NFT collection’s floor price, dropping from 33 ETH to 16 ETH.

The NFT collection was earlier second-largest by market cap, but came to third position as Bored Ape Yacht Club reclaimed the position with a floor price of 18.89 ETH.

The token launch quickly generated over $90 million in trading volume, while PENGU’s market cap dropped to less than $1.9 billion at press time.

Bottom Line

PENGU was listed on major crypto exchanges like Binance, OKX and Bybit for spot trading during the launch.