What is the PENGU crypto about? Learn how the Pudgy Penguins community achieved success, and who was eligible for the PENGU airdrop.
1. What is PENGU crypto?
What is PENGU cryptocurrency? PENGU is the official token of the Pudgy Penguins NFT collection. Named after the community’s beloved nickname for their NFTs, Pengu, the PENGU token drives community expansion, project growth, member rewards, and governance within the Pudgy Penguins ecosystem.
With a total supply of 88.88 billion tokens, 25.9% of the supply is allocated to the Pudgy Penguins community via an airdrop to holders of Pudgy Penguins, Lil Pudgys, and Pudgy Rods NFTs. This strategic move is part of a broader vision to reward existing community members while reaching a wider audience.
Solana’s fast transactions, low fees, and growing popularity presented an ideal environment for expanding Pudgy Penguins into new communities. While the token debuted on Solana, plans are already in place to bridge PENGU to Ethereum and Abstract, a consumer-focused Layer-2 (L2) network.
CEO Luca Netz has shared that the launch of PENGU is not just about the economic value of the token; it’s also about fostering a deeper alignment between the community and Pudgy Penguins’ long-term vision. Though the specific utility of PENGU is still unfolding, it will play a significant governance role within the ecosystem.
2. What Are Pudgy Penguins?
While it’s not based on a household animal like POPCAT, the penguin-based characters of the NFT series is still immediately recognisable. Pudgy Penguins is a collection of 8,888 unique cartoon penguin NFTs launched on the Ethereum blockchain in July 2021. Each penguin is randomly generated from over 150 hand-drawn traits, resulting in one-of-a-kind characters with distinct personalities and values.
The project quickly gained traction during the first NFT wave, selling out in 19 minutes, and capturing widespread attention with its endearing designs plus strong community focus. Pudgy Penguins became one of the most successful NFT projects, at one point surpassing the Bored Ape Yacht Club (BAYC) to become the second-largest NFT collection by market capitalisation.
In April 2022, Los Angeles entrepreneur Luca Netz acquired the intellectual property rights to Pudgy Penguins for 750 ETH, with the goal of building a long-lasting, real-world legacy brand that transcends the volatile NFT market.
His strategy involved direct engagement with the Pudgy Penguins community, often referred to as the Huddle, and aligning the project’s goals with their feedback and ideas. This collaborative approach has been pivotal to Pudgy Penguins’ resurgence and long-term growth.
Under Luca’s leadership, the NFT brand evolved beyond digital art to become a multi-faceted brand that blends Web3 technology with mainstream adoption.
In May 2023, the project made headlines by launching Pudgy Toys, a soft toy series based around the Pudgy Penguins collection. Each toy came with a QR code that grants access to Pudgy World, a virtual experience where users can customise their digital penguins with collectible traits, and was sold at major retailers like Target, Walmart, and Amazon.
The brand has also introduced licensing opportunities for NFT holders, allowing them to commercialise their Pudgy Penguins by integrating the art into businesses. Pudgy Penguins supports holders’ ventures by offering promotional assistance to businesses that align with the brand’s values, and have annual revenues under $500,000.
3. The Pudgy Penguins Community and Ecosystem
The Pudgy Penguins community, affectionately known as The Huddle, is one of the more resilient communities in the NFT space. Despite market challenges during the broader NFT downturn, The Huddle has remained strong with active member participation.
The Pudgy Penguins ecosystem now includes:
- Pudgy Penguins NFT Collection: The original Pudgy Penguins collection launched in July 2021, consisting of 8,888 unique penguin avatars on the Ethereum blockchain
- Lil Pudgy NFTs: A companion collection of 22,222 NFTs launched in December 2021, which were distributed through airdrops to existing Pudgy Penguin holders
- Pudgy Rods: Pudgy Rods are fishing rod collectibles that grant holders priority for future airdrops and special privileges
- Pudgy Toys: Soft toys featuring ten unique designs inspired by Pudgy Penguin NFTs. Each toy comes with a QR code that grants access to Pudgy World, a metaverse experience where users can claim their characters and customise them with traits.
- Pudgy World: The metaverse platform of the Pudgy Penguins ecosystem launched on the zkSync Era network. It offers immersive experiences like mini-games and open-world roaming.
- Abstract Chain: Pudgy Penguins’ proprietary zero-knowledge (ZK) L2 built on Ethereum. It focuses on providing fast, low-cost transactions and will play a key role in supporting the broader Pudgy Penguins ecosystem, including PENGU token utility and interoperability.
- Pudgy Bridge: Enables NFT holders to transfer assets seamlessly across blockchains such as Ethereum and Polygon
- Soulbound Tokens: Pudgy Penguins has also ventured into Soulbound Tokens, which are non-transferable tokens representing social identity and achievements like the TruePengu tokens and PenguPins
- Igloo Brand: The Igloo Brand clothing line brings Pudgy Penguins into the world of fashion with designs on T-shirts, hoodies, jackets, and beanies inspired by the ecosystem
- Ecosystem Benefits: Holders of Pudgy Penguins NFTs enjoy access to exclusive events and experiences, plus IP licensing opportunities for commercial ventures
4. Pudgy Penguins Controversy in 2022
The Pudgy Penguins project faced significant turbulence in its early days due to controversies surrounding its original founding team. Launched in July 2021 by ColeThereum (Cole Villemain), Mr. Tubby (Clayton Patterson), MickyJ, and Jonah, the project initially showed promise but soon encountered challenges that shook the community’s confidence.
Cracks in the leadership began after a community moderator publicly exited the project, accusing the founders of unprofessional behaviour and revealing a mismanaged promotion to community manager without agreed-upon terms.
Shortly after, NFT influencer 9x9x9 alleged that the Pudgy Penguin founders had drained funds meant for the project’s development and were looking to sell the project after pocketing its profits. The allegations caused widespread backlash, leaving many community members disappointed.
The project was sold to Los Angeles-based entrepreneur Luca Netz acquired Pudgy Penguins for 750 ETH. Under Netz’s leadership, Pudgy Penguins underwent a remarkable transformation. The project saw an immediate boost in confidence, with its floor price recovering to 2.5 ETH shortly after the acquisition. This marked the beginning of a new era for Pudgy Penguins, focused on rebuilding its reputation and expanding its reach beyond Web3.
Shortly after the launch of the PENGU token in December 2024, Pudgy Penguins faced another controversy stemming from the launch of its PENGU token airdrops, distributed through QR codes included with its Pudgy Toys. While the initiative aimed to combine Web3 technology with real-world collectibles, it inadvertently attracted speculators who disrupted the buying experience for genuine collectors.
Reports emerged of speculators destroying Pudgy Penguins toy boxes in mass retail stores like Walmart and Amazon to steal the QR code slips for the PENGU token airdrops. This left true collectors and fans unable to purchase complete and intact products, sparking outrage across social media. Despite the backlash, the controversy underscores the widespread interest in Pudgy Penguins and its ecosystem.
5. The Team Behind Pudgy Penguins
The Pudgy Penguins project has grown into one of the fastest-growing Web3 brands, driven by its leadership team and community, The Huddle.
The core leadership team includes:
- Luca Netz, CEO
- Lorenzo Melendez, President
- Austin, Head of Marketing
- Peter Lobanov, Chief Creative Officer
- Jennifer McGlone, Chief Legal Officer
- Vedant, Head of Strategy
6. PENGU Tokenomics
The PENGU token played an important role in rewarding community members, incentivising new users, and fostering the project’s long-term success. With a total supply of 88,888,888,888 tokens, the distribution is designed to balance rewards for the community with resources for future development and expansion.
Pudgy Penguins Community: 25.9%
The largest allocation is reserved for the dedicated holders of Pudgy Penguins, Lil Pudgys, and Pudgy Rods NFTs.
- Main Pudgy Penguins holders received over 1.7 million PENGU per NFT
- Lil Pudgy holders were allocated over 188K PENGU each
- Pudgy Rod holders received between 105K to 195K PENGU, depending on rarity
Unlike traditional snapshots, this allocation was determined by NFT ownership at the time of token generation, rewarding active participants.
Other Communities: 24.12%
Nearly a quarter of the supply has been set aside for holders of NFTs from other Web3 communities, aiming to onboard five million new members into the Pudgy Penguins ecosystem.
Eligible communities include projects like Doodles, BoDoggos, Bitcoin Puppets, Azuki, BAYC, MAYC, Goblintown, and many more. Buyers of Pudgy Toys who interact with the Pudgy World gaming platform by scanning the QR code included with the toy can also earn PENGU tokens.
Pudgy Penguins Team: 17.8%
Current and former team members of the Pudgy Penguins ecosystem are allocated nearly 18% of the total token supply. These tokens are subject to a one-year cliff and three-year vesting period, ensuring the team remains incentivised to grow the project sustainably.
Liquidity Pools: 12.35%
To facilitate trading, a portion of the token supply is reserved for creating liquidity pairs on decentralised exchanges.
Igloo Inc.: 11.48%
The parent company, Igloo Inc., receives 11.48% of the supply. These tokens also follow the same one-year cliff and three-year vesting period as the team’s allocation.
Public Good Initiatives: 4%
Four percent of the token supply is dedicated to public good initiatives, continuing the brand’s commitment to fostering kindness and making positive social impacts, as seen in past campaigns like Pudgy Kindness.
Proliferation: 4%
This allocation will be used to expand the Pudgy Penguins brand, marketing initiatives, partnerships, and exchange listing fees.
Binance HODLer Program Participants: 3%
A portion of the token supply is reserved for participants in Binance’s HODLer program, offering incentives to a broader Web3 audience as part of the token’s launch on Binance.
FTT Holders: 0.35%
The smallest allocation is set aside for FTT holders (the token associated with the now-defunct FTX exchange). This move drew attention, particularly as FTT’s price saw a brief spike following the announcement.
The Role of PENGU in the Ecosystem
The PENGU tokenomics strategy is carefully designed to incentivise engagement and ensure long-term sustainability:
- Community-Centric Approach: Rewarding existing NFT holders while onboarding new members from diverse communities fosters inclusivity and expansion.
- Sustainable Team Incentives: Long-term vesting for team and company allocations ensures alignment with the project’s vision.
- Physical and Digital Integration: By combining physical products like Pudgy Toys with PENGU token airdrops, the project bridges the gap between Web3 technology and real-world collectibles.
7. PENGU Token Launch and Airdrop Claim
The PENGU token successfully launched on December 17, 2024, on the Solana blockchain, marking a significant milestone for the Pudgy Penguins ecosystem.
Who was eligible for PENGU token claims? The airdrop was available to holders of NFTs within the Pudgy Penguins core collections (Pudgy Penguins, Lil Pudgys, and Pudgy Rods) and participants with Soulbound Tokens (SBTs) that were captured during a snapshot on December 8, 2024.
To claim the PENGU tokens, participants needed to:
- Verify Ownership: Holders of eligible assets had to confirm their ownership of NFTs or SBTs
- Connect Wallets: Participants connected both their Solana and Ethereum wallets to facilitate the claim process
- Cover Gas Fees: A minimum of $10 worth of SOL was required in the Solana wallet to cover transaction fees
- Use Desktop Wallets: The team recommended desktop wallets to ensure the claim process proceeded smoothly and without technical issues
- Universal Name Feature: During the claim process, participants could link a universal name to their wallets, creating a unique identifier tied to their Pudgy Penguins NFT
Holders of Pudgy Toys were also eligible to claim PENGU tokens. The toys, currently operating on the Igloo Ethereum Layer 2 Abstract Chain, will soon connect to the mainnet through a PENGU token bridge powered by LayerZero.
Toy buyers could scan the QR codes included in the packaging to link their purchases to the Pudgy World gaming platform and claim PENGU tokens once the bridge goes live.
8. Why Launch PENGU on Solana Instead of Ethereum?
Pudgy Penguins NFTs launched on Ethereum in July 2021 and have become one of the most recognised collections on the network. However, the decision to launch the PENGU token on Solana represents a strategic pivot. Solana’s network offered unparalleled speed and cost-efficiency compared to Ethereum, making it an attractive choice for high-volume transactions and token activity.
Plus, Solana outpaced Ethereum and its L2 solutions in daily active addresses and daily transactions. Launching on Solana positioned PENGU to tap into this thriving user base, introducing Pudgy Penguins to a broader Web3 audience.
At the same time, the Pudgy Penguins team was actively contributing to the development of Abstract, a consumer-centric L2 solution. The approach ensures PENGU was well-established before integrating into Abstract, giving the new network a significant head start with a popular token already in circulation.
9. Conclusion
The launch of PENGU marks a pivotal step for Pudgy Penguins as it transitions from an NFT collection to a thriving Web3 ecosystem. With plans for multi-chain expansion and strong community support, Pudgy Penguins is poised for continued growth in the Web3 space.
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Disclaimer: This information is intended for general knowledge and informational purposes only, and does not constitute financial advice. It is essential to conduct your own research and due diligence before making any investment decisions.
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