Market volatility rocks Pudgy Penguins’ $1.5B PENGU airdrop on Solana
- Pudgy Penguins’ PENGU token has seen wild price swings airdrop launch.
- PENGU trading volume hit $90M in hours, with traders making millions and others losing.
- Major exchanges list PENGU as NFT prices surge, then drop after token claim sell-offs.
The Pudgy Penguins NFT project has made waves in the cryptocurrency world with the launch of its native token, PENGU, on the Solana blockchain through a massive $1.5 billion token airdrop.
Announced on December 5, the PENGU token is designed to deepen the connection between the Pudgy Penguins brand and its growing global community.
PENGU airdrop details and eligibility
The PENGU airdrop, which went live at 8:00 a.m. ET is open to holders of Pudgy Penguins, Lil Pudgys, Rogs, and soulbound tokens (SBTs). Additionally, owners of Pudgy Toys, plush collectibles linked to the Pudgy World metaverse, are also eligible.
Claiming the tokens requires users to link their Solana and Ethereum wallets and maintain at least $10 worth of SOL for gas fees. With a claim period of 88 days, any unclaimed tokens will be permanently burned, reducing the circulating supply.
Of the 88.88 billion PENGU tokens minted, 25.9% is allocated to the Pudgy Penguins community, 24.12% to other NFT holders and “Huddle” members, and 17.8% to the project team under a one-year cliff and three-year vesting period. Another 11.48% is reserved for the company with similar vesting conditions.
Despite its initial success, PENGU’s launch was marred by technical issues. Claimants reported difficulties, including receiving fewer tokens than allocated. A member of the PENGU team attributed this to distributed denial-of-service (DDoS) attacks, which caused delays and errors and reassured users that unclaimed tokens could still be retrieved.
Pudgy Penguins ecosystem sees explosive market activity
Within hours of its launch, PENGU generated a trading volume of $90 million, soaring by more than 870% in value to an all-time high of $0.06845. Its market capitalization also surged above $3 billion, earning it a spot among the top 200 cryptocurrencies.
However, the token’s debut was not without setbacks. After hitting the ATH at $0.06845, PENGU’s value plunged by 51% to around $0.03232 at press time, highlighting the volatility often seen with new token launches.
A savvy trader took advantage of the price surge and bought 239.6 million PENGU using 23,742 SOL before cashing it out for 60,726 SOL, pocketing a staggering $8.36 million profit in just 20 minutes.
On the flip side, a trader attempting to snipe early trades lost $10,000 due to low liquidity, receiving only 78 PENGU tokens worth $3. This mishap underscores the risks of trading in low-liquidity pools.
The airdrop has also influenced the Pudgy Penguins NFT market. The collection’s floor price briefly surged to 34.1 ETH (approximately $136,000), cementing its position as the second most expensive NFT collection after CryptoPunks. However, post-airdrop selloffs led to a price decline, with some NFTs dropping below $63,000.
Binance, OKX, and Bybit list PENGU token
The PENGU token is now listed on major exchanges like Binance, OKX, and Bybit.
Binance has even added PENGU/USDT perpetual contracts with up to 75x leverage. These developments underscore the token’s growing prominence and market potential.
Looking ahead, PENGU plans to expand functionality through Ethereum and the Abstract Chain Layer 2. A LayerZero bridge is also in development, allowing Pudgy Toy owners to claim tokens seamlessly.
As the ecosystem matures, the PENGU token’s future will hinge on its ability to maintain user engagement and navigate the volatile crypto landscape.
