A new token, $PENGU, from the Solana-based Pudgy Penguins NFT collection surged by more than 800% to $3 billion within the first hour of its launch. This increase and a trading volume of over $90 million put it on the list of the 200 largest digital currencies by market capitalization.
The token release was done through a massive airdrop, where users received airdrops in proportion to their total Pudgy Penguins assets. These included the original Pudgy Penguins, Lil Pudgys, Rogs, and Soul Bound Tokens (SBT). For instance, the airdrop was also aimed at people who held Pudgy Toys–physical collectible toys available at retailers like Wal-Mart or Target.
The introduction of $PENGU has not only leveraged a ready audience of digital collectibles enthusiasts but has also expanded to bring the Pudgy Penguins ecosystem into the physical merchandise. In this strategic move, the project broadens its cultural and commercial impact for improving and developing the conversion of virtual assets to tangible products.
Moreover, the token's onboarding to various centralized exchanges, including Binance, OKX, and Bybit, immediately after its launch contributed greatly to its increased use and trade. Binance has added PENGU to its futures products, where users can trade the PENGU/USDT perpetual contract with up to 75x leverage. These are crucial signs suggesting a massive inflow of institutional players towards NFT or artists’ token-backed digital assets.
The launch has positively influenced the Pudgy Penguins NFT market, first increasing the floor price to 34.1 ETH, 2.6% higher. Although it declined to 16.07 ETH, increased market circulation shows active responses to the token launch and NFT prices.
This trend shows the integration between various types of assets in the blockchain system, in which a specific type of asset ‘influences’ the rest in terms of performance. Proposing to introduce cross-chain compatibility through LayerZero, the Pudgy Penguins team envisions integrating a smooth use of the token on both Ethereum and Solana platforms, which may become a new trend for the industry in the context of NFT.