Pudgy Penguins: From $2.5M Acquisition to 6.2 ETH Floor Price – A Journey of 5 Key Moments

Pudgy Penguins: From $2.5M Acquisition to 6.2 ETH Floor Price - A Journey of 5 Key Moments


Learn how Pudgy Penguins, a non-fungible token (NFT) project, overcame setbacks and regained momentum, with the launch of Pudgy World and the addition of the collection to the NFT lending platform Blend, resulting in a new all-time high sale in August 2023 and the release of toys based on the penguin NFTs that reportedly sold 20,000 units in a few days.

After Pudgy Toys debuted on Amazon on May 18, the floor price of the cute Non-Fungible Token (NFT) project shot up over 6 Ethereum (ETH). Now, with the launch of Pudgy World and the addition of the collection to the Non-Fungible Token (NFT) lending platform Blend, it is continuing to build momentum.

Pudgy Penguins, a non-fungible crypto token (NFT) project made up of cute chubby birds, has experienced waves of success and mishap since its debut in July 2021, including a rapid downturn in price and sentiment as doubts surrounding the founders resurfaced thereafter that year.

The community of holders, known as Pengus or “the Huddle,” was upset that the founders had failed to deliver on the project’s original roadmap. Their feathers were further ruffled after accusations arose that the founders had drained funds from the treasury.

This led to some very angry birds in the Huddle, who moved to oust the founders in a community vote in January 2022. This is where most Non-Fungible Token (NFT) stories end – the high-flying promises and hopes get grounded by bad actors and all that remains is a community united by disappointment.

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On the other hand, this bird tale found a different flight path: In April 2022, a Los Angeles entrepreneur and member of the Huddle himself, Luca Netz, swooped in and led the buy of the brand for 750 Ethereum (ETH), or $2.5 Million at the time, with a promise to build out the brand and foster better communication. A little greater than a year thereafter, new investments, real-life toys and a rebound in Non-Fungible Token (NFTs) sales have restored the penguin NFTs’ ethos of “good vibes and positivity for everyone” and helped the penguin prices hit new heights.

The penguins’ march to success

After Luca Netz and the new team took over the project, they laid out their plans to focus on building out the project’s intellectual property (IP) and “to be the brand that leads the way in onboarding people from Web2 into Web3.” In contrast to  the original founders, they took steps to begin putting that roadmap in place, announcing during the summer of 2022 that they would be creating toys according to the penguin Non-Fungible Token (NFTs) and releasing a children’s book.

In an interview with CoinDesk Television, Netz stated that he was “a company believer that IP is going to be the Trojan Horse for really bringing hundreds of millions of people into cryptocurrency and into Web3.”

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“For them to join the space, they’re going to have to fall in love with a character and this character to us is Pudgy Penguins,” he said.

The mood and momentum had shifted, leading to a new record-breaking peak sale in August and a Christmastime rally in December 2022, regardless of the overall cryptocurrency winter.

In May 2023, they announced a new $9 Million financing round and shortly after, launched the promised toys, which reportedly sold 20,000 units in several  days and sent the floor price of the project soaring to 6.2 Ethereum (ETH) on May 20, 2023, reports by data from Non-Fungible Token (NFT) marketplace OpenSea.

In tandem with the toys, the team unveiled Pudgy World, which connects people’s real-life toy purchases with the digital world and onboards them to Web 3.0 in a frictionless way – the very “Trojan Horse” Netz spoke about creating. Toy buyers who register with an email address receive Non-Fungible Token (NFTs) and a cryptocurrency wallet without even realizing it, easing the otherwise burdensome process of setting up and financing a cryptocurrency wallet.

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Rounding out a strong 1st half of 2023, Non-Fungible Token (NFT) lending platform Blend announced the inclusion of Pudgy Penguins onto their platform, further legitimizing its place between other trending collections like Azuki and Bored Ape Yacht Club.

The Huddle is key

Although while the list of Non-Fungible Token (NFT) projects that looked like the following big thing and then flamed out is vast, there is a much narrower group of projects that got past a dark, icy winter. So what went right for these penguins?

In Web 3.0, the power of the community shouldn’t be underestimated. Netz and the leadership team understood they required to earn their trust and support or they could suffer the same destiny as the founders.

To that end, the team made good on their promises to provide “monthly updates for penguins who may have been fishing in a cave” on their blog and give regular updates on Twitter platform and Discord as well. Further, they empowered the community to create subcommunities or clans and planned real-life and virtual events to connect the community.

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On the opposite end, Non-Fungible Token (NFT) projects like Greater than Gamers have suffered from unclear communication and a general lack of transparency, while the Pixelmon Non-Fungible Token (NFT) promised the ” largest and highest quality game” and delivered what even they had to admit was laughably bad art. Neither has managed to bounce back as of writing.

The Huddle is likewise able to share in the Pudgy Penguins’ success. Part of the DNA of the project is allowing holders to leverage their IP and profit off their penguins, whether through licensing or other deals.

Luca Netz stated on a Twitter Spaces with Blur Founder Pacman on May 25 that the toys were made with the “IP of 16 different holders.” He also mentioned that he felt it was his and the team’s responsibility to assist the community to monetize and find licensing opportunities as the average individual doesn’t have any idea of how to cause a licensing deal successful.

Similarly, Web 3.0 giant Yuga Labs has given the holders of Bored Apes and other Non-Fungible Token (NFTs) in their catalog full commercial rights to the IP of those Non-Fungible Token (NFTs), and has seen some launches by entrepreneurial holders such as branded restaurants, beverages, clothing and even musicians using Apes as avatars.

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Only time will tell if the project will continue to see success, but the present forecast looks promising. As of writing, Pudgy Penguin Non-Fungible Token (NFTs) have done a total of 170,457 Ethereum (ETH) in volume of trading (over $300 million) and have a floor price of 5.4 Ethereum (ETH), or about $9,700.

Rosie Perper.



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