Pudgy Penguins (PENGU) Token Falls 35% as Airdrop Claims Trigger Selloff

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As a seasoned analyst with over a decade of experience in the crypto market, I’ve witnessed countless launches and watched tokens soar or plummet based on various factors. The launch of PENGU, the token from the Pudgy Penguins NFT collection, is no exception to this trend.

As an analyst, I’m reporting on the recent launch of PENGU, the token associated with the popular Pudgy Penguins NFT collection. Today marked its live debut, and eligible holders received an airdrop. However, immediately following its launch, a significant wave of selling pressure led to a 35% decrease in the value of the PENGU token.

During the initial hour of trade, the volume for PENGU reached an impressive $474 million. Let’s delve into the details of its launch, exchange listings, and the current market reaction following the airdrop event.

PENGU Launch Sees Massive Selling Pressure

A few weeks ago, the Pudgy Pengu team announced their intention to release a token by the end of this year, leaving the wider market curious about its exact launch date. However, on December 16, Binance revealed that they would start offering the PENGU token for spot trading today, putting an end to the speculation.

The unveiling and distribution of the PENGU token ignited enthusiasm within the cryptocurrency community, as it released a portion of its initial 88.88 billion tokens to the public.

25.9% of the allocation goes to the Pudgy Penguins NFT community, while 22% is set aside for both Solana and Ethereum communities. The Pudgy Penguins project team receives 17%, with a one-year delay before access (cliff) and a three-year vesting period. Lastly, 12.35% is designated for liquidity pools.

Contrary to the surge in token prices following recent Binance listings, the market capitalization of PENGU has decreased, dropping from $4.32 billion to $3.07 billion as of this moment.

The cost of the token has dropped significantly, from $0.068 down to $0.043. As suggested by Nansen, this decrease in value might be connected to an increase in selling activity from individuals who received the airdrop.

It’s evident from the data presented that more units of this cryptocurrency have been sold since its inception compared to the number of times it was bought. If selling activity increases significantly, there’s a possibility that the altcoin’s price might drop substantially below $0.043.

Pudgy Penguins Floor Price Follows the Token Direction

Before the recent PENGU airdrop and token launch, the minimum trading value for a single Pudgy Penguins NFT soared to a record high of approximately 34.80 Ether, equivalent to more than 100,000 US dollars.

The cost of this project has placed it among the priciest NFT collections. Nevertheless, within the past 24 hours, the minimum asking price has dropped by 43.60%, currently standing at 18.50 Ether.

In a recent disclosure, Lookonchain highlighted that certain traders managed to make gains with the PENGU token. For instance, one trader purchased approximately $5.36 million in tokens and swiftly sold them for around $13.72 million within a mere 20-minute span.

As a researcher studying the crypto market, I find that the recent surge in the value of this digital currency might not be replicated promptly. The prediction is that its price will likely keep falling in the near future, possibly due to the ongoing downward trend. This notion is further strengthened by the listing of the cryptocurrency on another exchange, OKX, which could potentially exacerbate the downward pressure on its price.

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2024-12-17 21:09