Pudgy Penguins

History

Pudgy Penguins is an NFT (Non-Fungible Token) collection that has garnered significant attention in the cryptocurrency art space. 

The collectioin was launched in July 2021 by a group of four college students, including Cole Villemain. The collection consists of 8,888 unique NFTs, each featuring adorable penguin characters with various traits and accessories.

Initially, Pudgys gained popularity quickly due to their charming designs and the growing interest in NFTs. The project capitalized on the excitement surrounding digital collectibles, attracting a dedicated community of collectors.

On August 30, 2021, a collection of eggs wrapped in red ribbon was released as a free NFT for Penguins owners. This release caused quite a stir in the community as the contents of the eggs were kept secret until just before Christmas. 

In December 2021, the Lil Pudgys collection was released to appeal to a wider audience. The collection features smaller, cuter versions of the original penguins while maintaining an adorable aesthetic.

On December 25, 2021, the eggs hatched and revealed Pudgy Rods, fishing rods that were disappointed by the community. The disappointing response to Pudgy Rods reinforced existing fears, uncertainty and doubts (FUD) about the Pudgy Penguins project and its founding team. This was a turning point in the community's confidence in the leadership.

Despite early success, the project faced significant challenges in late 2021 and early 2022. 

By early 2022, as the NFT market began to decline, community members pushed for a leadership change. In April 2022, Luca Netz acquired the Pudgy Penguins IP for 2,500 ETH (approximately $2.5 million) and took over as CEO. His vision focused on revitalizing the brand and engaging more actively with the community.

Luca Netz on the Jason Yanowitz podcast:

Two days after we bought it, a brutal bear market began with a bunch of black swans. 
A month later the royalties for NFT trading went to zero along with all our projections of future earnings. I was betrayed by my best friend and co-founder. The market sentiment was so bad that on the news of the partnership with Walmart, the price of NFT didn't go up, it went down!

I approached three hundred venture capital funds for funding and they all said no, while continuing to invest in other projects similar to ours. In the end, almost all of our funding came from individual venture capitalists.

Our story is that of an outsider, a dark horse.

Under Luca Netz's leadership, Pudgy Penguins shifted towards a community-driven model. Netz actively participated in discussions on platforms like Discord, listening to feedback and adapting strategies to align with community expectations.

The revitalization strategy included expanding beyond digital collectibles. In September 2023, the collection launched a line of physical toys, known as Pudgy Toys, which became available at major retailers such as Walmart and Smyths Toys Superstores. This move generated significant revenue, with over 750,000 toys sold within seven months.

The brand also announced plans for a free-to-play 3D game called Pudgy World, set to launch in early 2024. This game aims to create a unique digital experience that connects fans with their favorite characters.

The introduction of "Overpass," a licensing platform developed in collaboration with SaaSyLabs, allows NFT holders to license their assets easily. This platform aims to facilitate broader participation from both Pudgy Penguins holders and other NFT projects.

In December 2024, was introduced the PENGU token, designed to enhance community engagement by providing governance rights and exclusive access to events and merchandise.

Pudgy Penguins game

Games expand the brand ecosystem.

Pudgy World is an open-world game  released in 2024. It's built on the Ethereum blockchain using zkSync technology, which enhances scalability and user experience.

The game will allow the NFT holders and owners of physical Pudgy Toys to participate. Players will embark on a story-driven journey where they can customize their penguin characters and interact with other players  The gameplay includes quests, social interactions, and exploration within a colorful world.

Players can engage without needing to set up a crypto wallet or purchase cryptocurrency; instead, they can simply scan a QR code included with their Pudgy Toy to access unique traits for their digital penguins.

A playable preview was showcased at Art Basel Miami, where attendees could experience the game on custom-built arcade machines. Feedback from testers was positive, highlighting the fun and engaging nature of the gameplay.

In addition to Pudgy World, the brand is collaborating with Mythical Games to develop Pudgy Party, a AAA mobile game expected to launch in 2025. This game will be available on iOS and Android platforms. The game will feature pick-up-and-play mechanics combined with challenging action rounds. It aims to provide a competitive environment where players can customize their penguin avatars and compete against friends and family.

The development process will actively involve the community, allowing the NFT holders to influence game features and content. 

Pengu Meme Token

PENGU is a token of the Pudgy Penguins ecosystem. The total number of PENGU tokens is 88.88 billion issued on the Solana blockchain.

The decision to launch on Solana is to enable the Pudgy Penguins character to reach a new audience. 

More than 50% of tokens distributed to communities for free without vesting.

Thanks to the drop, the number of holders went from ~7k people to millions.

Luca Netz on the Jason Yanowitz podcast:

We didn't want to limit ourselves to just the NFT. At the end of the day, memes are designed to improve your mood. So we want to utilize anything that can spread memetic emotions, be it content or products.

The biggest upside for memes is in becoming a cultural phenomenon. That is our ultimate goal.

We launched PENGU because the token is more universal than the NFT. Pudgy Penguins are now priced from $60k, making them unaffordable for regular people.

PENGU can be owned by anyone.

I refer to PENGU as “memcoin++.” Because I'm flooding stores with Penguins and putting Penguins on streaming service screens and in games all over the world.

Market Success

In December 2024, the collection reached ATH exceeding a daily volume of $100 million.

The most expensive NFT was sold #6873 sold on August 23, 2022 for 400 ETH (about $650k at the time of the deal). This is the rarest NFT in the collection (1/8888 in rarity).

Earlier in the year, at a higher Ethereum price, NFT 6276 was sold for 376 WETH, totaling $1,250,592 at the time of purchase.

Holders Distribution

Holding Period Distribution

Loan Stats

All time stats

The collection is one of the most sought-after amongst NFT lending protocols. You can borrow against your penguin on such sites as Arcade, BendDAO, Blur, CYAN, Fungify, Gondi, JPEGd, Magnify, Metastreet, NFTfi 

or trade it on Blur and Opensea.