PENGU Token Launch Shakes Up Crypto Market: Airdrop Frenzy, Volatility, and NFT Impact

18. Dec 2024 Posted by Bakshi A. on News

Tuesday marked a significant milestone in the crypto world as PENGU, the token driving the Pudgy Penguins ecosystem on Solana, made its debut. The token swiftly entered the top 100 cryptocurrencies by market capitalization, supported by an airdrop that includes millions of eligible NFT holders and traders.

At launch, PENGU was priced at $0.068 but has since dropped to $0.0335—a 51% plunge within the day. Despite the drop, PENGU boasts a $2.1 billion market cap, placing it as the 76th largest cryptocurrency. With a total supply of over 88.88 billion tokens, more than half—about 44.8 billion—has been allocated to the airdrop.

Airdrop Highlights:

  • NFT holders from Pudgy Penguins and partnered collections, traders on Ethereum and Solana, and even holders of FTT (the defunct FTX exchange token) qualify for the airdrop.
  • At current valuations, the airdrop is worth approximately $1.5 billion.
  • Claimants have until March 15, 2025, to collect their tokens, after which unclaimed tokens will be locked permanently.

The launch wasn’t without challenges. Technical glitches, including reports of lower-than-expected token allocations and potential DDOS attacks, marred the initial claim process. A Pudgy Penguins team member revealed that over 100,000 claims were filed within the first hour, accompanied by 4.7 million website visits.

PENGU trading activity has been extraordinary, with nearly $1.5 billion worth of tokens exchanged on the first day, ranking it the 14th most-traded cryptocurrency in the top 100.

Impact on Pudgy Penguins NFTs:
In the lead-up to the airdrop, the value of Pudgy Penguins NFTs skyrocketed, surpassing $100,000 for the first time. This put them on the verge of surpassing CryptoPunks, the reigning leader in profile picture (PFP) collections.

However, post-airdrop behavior has dampened the hype. Many NFT holders sold off their assets after claiming tokens, leading to a sharp decline in floor prices. As of now, Pudgy Penguins NFTs are priced at just over $63,000—a 48% drop from yesterday, per NFT Price Floor.

While PENGU's debut underscores the volatility of new tokens, its rapid rise to prominence signals strong interest in the Pudgy Penguins ecosystem. The coming weeks will determine whether the hype surrounding PENGU and its associated NFTs will sustain or fade.