$PENGU Airdrop Disaster As Price Drops By Over 50% Post Launch
The debut of $PENGU, a new token by Pudgy Penguins which trades on the Solana (SOL) blockchain, has been met with mixed reactions, with the token experiencing a steep price drop shortly after its highly anticipated launch.
Launched in 2021, Pudgy Penguins is an NFT collection consisting of 8,888 unique penguin images, which represent the brand. Over time, the project expanded, introducing additional collections like Pudgy Rods.
Price Drop After Airdrop
The $PENGU token is expected to play an important role in the governance of the Pudgy Penguins project. However, in the hours following the December 17th airdrop, $PENGU dropped by more than 50% in price.
The project had distributed nearly half of its total supply, about 89 billion tokens, to its community, with 26% of the tokens allocated to NFT holders. The token initially launched with a market capitalization of $2.8 billion. However, its value quickly slid below the $2 billion mark.
Why Did This Happen?
After the $PENGU airdrop was initiated, many believe the value of the token plummeted due to intense selling pressure and because most investors involved were not actually interested in the longevity of the project but rather in making a quick buck.
This decline also severely impacted the floor price of the Pudgy Penguins NFTs, which dropped to 16 ETH compared to its previous price of 33 ETH. Once the second-largest NFT collection by market capitalization, Pudgy Penguins now holds the third position, as Bored Ape Yacht Club (BAYC) reclaimed its spot with a floor price of 18.89 ETH.
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