As the official token of the well-known NFT project Pudgy Penguins, $PENGU sparked heated market discussions in December thanks to its sunshine (universally and equitably distributed) airdrop. At the same time, the price of Pudgy Penguins NFTs surged, with the floor price reaching 35.99 ETH. This set a historical high and propelled it to become the second-largest NFT project by market cap at 199.7K ETH, second only to CryptoPunks.

Source: NFTGO

What enables Pudgy Penguins to maintain its popularity in the NFT space consistently? Is $PENGU, as the ecosystem token of Pudgy Penguins, merely a Memecoin? This article will delve into the Pudgy Penguins ecosystem, focusing on its team, funding, brand products and services, gaming ecosystem, and the upcoming Abstract Chain to showcase the project’s past, present, and future development potential to users.

What are Pudgy Penguins and $PENGU?

Pudgy Penguins is a well-known NFT project that officially launched on the Ethereum network in July 2021. This NFT collection has a limited supply of 8,888 adorable cartoon penguins, each uniquely generated with random traits such as backgrounds, body shapes, and accessories. Thanks to its cute and quirky designs and the NFT boom at the time, Pudgy Penguins quickly became one of the most popular projects in the NFT space.

Source: Pudgy Penguins

In 2022, the Pudgy Penguins team underwent a major restructuring. Under the leadership of new CEO Luca Netz, the project accelerated ecosystem development with remarkable efficiency. It introduced various products and services, including the soulTransport protocol, physical collectibles Pudgy Toys, an OTC trading solution Pudgy Swap, the digital gaming platform Pudgy World, and the IP licensing platform OverpassIP. On December 17, Pudgy Penguins officially launched the $PENGU token and initiated a token airdrop for users actively participating in the ecosystem.

The total supply of $PENGU is 88,888,888,888 (88.888 billion) tokens. Initially launched on the Solana blockchain, it will later support cross-chain functionality with Ethereum and Abstract Chain. Abstract Chain, developed by Pudgy Penguins using ZKSync’s ZK Stack framework, is set to launch its mainnet in January 2025. At that time, Pudgy Toys and Pudgy World will also be deployed on Abstract Chain.

Team Background and Funding

Cole Villemain and three other users initially founded Pudgy Penguins. However, in the early stages of the project, Cole Villemain faced significant scrutiny after allegations surfaced regarding his involvement in previous “rug pull” incidents and other unethical behaviors, both in real life and in the blockchain industry. Amid a community backlash, Luca Netz, a community member, successfully acquired the project for 750 ETH (approximately $2.5 million), taking over as CEO and assembling a new team. Luca Netz, known for his exceptional talent in digital marketing, became a millionaire at the age of 19.

Following this transition, notable figures joined the Pudgy Penguins advisory board, including Alex Svanevik, CEO of Nansen; RJ Cilley, COO of Saks Fifth Avenue; and Jordan Sterling, from Meta’s partnerships team.

In May 2023, Pudgy Penguins completed a $9 million seed funding round led by 1kx, with participation from Shima Capital, Big Brain Holdings, CoinGecko Ventures, Puzzle Ventures, Kucoin Ventures, DFG, Crit Ventures, and others.

Apparently, Pudgy Penguins has demonstrated even greater ambitions for its future. In June 2023, Pudgy Penguins and its on-chain IP licensing platform, OverpassIP, jointly established a parent company, Igloo, Inc, focused on building a mainstream Web3 IP ecosystem and infrastructure. Additionally, Igloo, Inc acquired the on-chain creator economy platform, Frame.

Igloo, Inc. has secured two investment rounds to date. In July 2023, the company raised over $11 million in a funding round led by Founders Fund, with Distributed Global, 1kx, Everest Ventures Group, and Selini Capital joining as investors. This funding was designated for the development of its new subsidiary, Cube Labs. In November, the company received additional strategic investment from Animoca Brands and its subsidiaries—The Sandbox and Animoca Brands Japan—though the investment amount remains undisclosed.

The Pudgy Penguins Ecosystem Empire

While Pudgy Penguins initially gained fame by capitalizing on the NFT trend, the project has truly come into its own under Luca Netz’s leadership, demonstrating remarkable potential through a fresh vision that energizes both its community and the market.

In a recent interview, Luca Netz stated that Pudgy Penguins has two primary missions: first, to become synonymous with penguins worldwide, and second, to serve as a mascot and symbol for cryptocurrency. To achieve these goals, the team’s approach is to build Pudgy Penguins into a positive and impactful brand, creating characters that forge memories and emotional connections in people’s lives.

Over the past three years, Pudgy Penguins has been implementing this strategy. The team has consistently centered its efforts on digital IP, focusing on product development and fostering diversified growth through cross-sector collaborations. Below is an overview of the products and services within the Pudgy Penguins ecosystem:

• NFT Collections

1) Pudgy Penguins: The flagship NFT collection currently has a floor price of approximately 22.69 ETH. It is now the second-largest NFT project by market cap, trailing only CryptoPunks. According to the latest on-chain data, the collection has 4,960 unique wallet holders.

2) Pudgy Rods: Released by the Pudgy Penguins team on August 30, 2021, as part of a free mystery box campaign. Each Pudgy Penguins NFT holder received an airdrop of a Pudgy Rod. The current floor price for Pudgy Rods is 1.13 ETH.

Source: NFTGO

3) Lil Pudgy: Launched on the Ethereum network on December 8, 2021, this collection comprises 22,222 NFTs. Of these, the first 8,888 were reserved for Pudgy Penguins holders. On-chain data shows that Lil Pudgy NFTs are held across 9,268 addresses, with a current floor price of 2.46 ETH.

• soulTransport Protocol

In January 2023, Pudgy Penguins officially launched the soulTransport protocol, which allows users and clubs to deploy private Soulbound Tokens (SBTs). As more test cases are developed, the protocol will be accessible to everyone.

• Plush Toys: Pudgy Toys

Pudgy Toys debuted on Amazon in May 2023. Each plush toy has an official NFT certificate that users can unlock by scanning a QR code to receive a digital wearable NFT, allowing them to experience Pudgy World. Within 48 hours of launch, Pudgy Toys sold 20,000 units, generating $500,000 in revenue. To date, over 1.5 million Pudgy Toys have been sold globally through retailers such as Walmart, Target, Smiths, and Hot Topic.

Source: Pudgy Penguins

In addition to impressive sales, Pudgy Toys won the Toy Insider 2023 Best Summer Toy Award in 2023.

• Pudgy World

Pudgy World is an interactive digital platform designed for Pudgy Penguins NFT holders, toy owners, and newcomers. Built on the zkSync Era blockchain, users can scan the QR code on their Pudgy Toys to access Pudgy World and embark on virtual adventures, participate in games, and construct igloos.

• OTC Trading Solution: Pudgy Swap

Launched in July 2023, Pudgy Swap is supported by Flip.xyz and features zero fees and zero royalties. Users can directly trade and exchange Pudgy Penguins with others on the platform.

Source: @pudgyswap

• IP Licensing Platform: OverpassIP

Earlier this year, Pudgy Penguins launched the beta version of OverpassIP, enabling users to license the IP of their Pudgy Penguins and Lil Pudgy NFTs. After completing an on-chain agreement, holders can collaborate with Web2 and offline brands to unlock the full potential of their NFTs. Currently, the beta is available exclusively to Pudgy Penguin, Lil Pudgy, and Pudgy Rods holders.

Source: overpassip.com

• .pudgy Domains

In July 2023, Pudgy Penguins partnered with Web3 domain provider Unstoppable Domains to allow users to create .pudgy domains for accessing Pudgy World. This simplifies login processes while enhancing users’ digital virtual experience.

• Web3 Gaming

Pudgy Penguins is heavily investing in the gaming space. They have developed their own arcade game, Pudgy Arcade, and a challenge-based game, Polar Challenge, while also collaborating with top industry gaming teams to expand the reach of the Pudgy Penguins IP.

This year, Pudgy Penguins partnered with the Web3 gaming project Pixelverse to include Pudgy Penguins characters in Pixelverse’s Telegram mini-games. Additionally, Pudgy Penguins will team up with gaming studio Mythical Games to release a Web3 mobile game, Pudgy Party, next year.

• Abstract Chain

Abstract Chain is an Ethereum-based Layer 2 network built on the ZK Stack framework. It aims to provide secure, low-cost, and fast transactions for consumer-focused user groups, enabling mass adoption. Currently in the testnet phase, Abstract Chain’s mainnet is set to launch in January next year (2025).

According to the official website, the Abstract Chain testnet has already integrated numerous protocols, including Ghost, The Graph, LayerZero, Pyth, BlastAPI, zkMarkets, and Alchemy.

$PENGU Tokenomics

The total supply of $PENGU is 88.888 billion tokens, and trading began on December 17. Initially, $PENGU was circulated on the Solana network, with future support planned for Ethereum and Abstract Chain. The distribution of $PENGU is as follows:

Source: Pudgy Penguins

• Team, investors, and advisors: 29.28% (locked for one year, then unlocked over three years)
• Community airdrop: 25.9%
• Other community airdrops: 24.12%
• FTT holders: 0.35%
• Liquidity: 12.35%
• Public utilities: 4%
• Marketing: 4%

The community airdrop primarily targeted Pudgy Penguins ecosystem users, including NFT holders and SBT holders. The other community airdrop addresses, estimated at around 5 million, covered active users on Solana and Ethereum networks.

While specific use cases for the $PENGU token haven’t been defined yet, Luca Netz has shared a broader vision in a previous interview. Though $PENGU might initially seem like another Memecoin, the team intends to evolve it beyond that category. They envision it becoming a powerful tool for brand recognition, with presence across physical retail stores and social media platforms. As the Pudgy Penguins IP becomes more widely recognized, this could drive increased market demand for $PENGU and boost its value.

Project Planning and Outlook

Based on its recent strategic moves and initiatives, the Pudgy Penguins team has shown exceptional efficiency and execution skills, demonstrating excellence in ecosystem development and strategic partnerships.

While the project started as an NFT venture, the team quickly realized that relying solely on NFT revenue wasn’t sustainable. Their strategic pivot to physical toys created a bridge between Web2 and Web3, strengthening the company’s long-term viability through diversified traffic and revenue streams. Throughout this evolution, the team has remained dedicated to developing the penguin IP while actively pursuing partnerships across multiple industries.

Looking ahead, with the launch of the Abstract Chain mainnet, Pudgy Penguins and its $PENGU token are expected to take on more diverse roles, contributing to the creation of a thriving ecosystem aimed at a broader audience.

Conclusion

Pudgy Penguins has already achieved remarkable success as an NFT project. Yet the team’s vision reaches further—they aim to establish it as a global brand and position it as the mascot of the cryptocurrency world. Realizing these ambitious goals will require tremendous effort and perhaps a touch of fortune.

The launch and airdrop of $PENGU have provided loyal ecosystem users with generous rewards during the holiday season. Whether it will bring more surprises to token holders remains a question that only time can answer.