Fat Penguin NFT has warmed through the cold winter, with the unit price rising against the trend, breaking 7 ETH

Source: Coindesk, Decrypt

Authors: Danny Nelson, Adam Morgan McCarthy

Compiled by: PANews

Who is the cutest animal in winter? Many people might think of penguins, perhaps because of the name. The "Pudgy Penguins" NFT series stood out during the crypto winter of 2022 and shone brightly during the Christmas season.

After the floor price rose to a historic high of 6 ETH on December 27, the Pudgy Penguins NFT project saw its floor price break 7 ETH on December 28, reaching 7.1 ETH, setting a new historic high in terms of ETH. The price increased by 30.28% in the past 24 hours, with trading volume nearing 2200 ETH, a growth of 159.20%. Additionally, the total trading volume for this NFT series has reached $216.43 million, with a market cap touching $9.132 million. This surge also ended a year-long downturn for Pudgy Penguins, which had been in a price slump since 2022 but rebounded after changes in ownership and renewed brand focus.

Once Active Community Meme Culture Faced Setbacks

The Pudgy Penguins, with a total issuance of 8,888 pieces, launched in June 2021 and quickly became one of the most popular PFP NFT series in the crypto community. Despite its lower market cap, its recognition is comparable to CryptoPunks and BAYC. Compared to other projects in the NFT market filled with quirky art, the cute and healthy cartoon images of Pudgy Penguins are more appealing to ordinary investors.

Unlike most NFT projects that are purely investment-driven, the "Pudgy Penguins" project is more like a social engagement opportunity, with nearly 7,000 holders and an exceptionally active Discord channel (even those without a penguin NFT can participate), attracting even Reddit co-founder Alexis Ohanian.

However, the co-founders of this promising project seemed to be overwhelmed by their success, failing to build a team even six months after the project's launch, which led to dissatisfaction among multiple stakeholders (including NFT hedge funds like StarryNightCapital and eGirlCapital) who proposed to migrate the community to a new project called WrappedPenguins.

In January 2022, due to the mismanagement of project funds, the Pudgy Penguins community voted to remove the project's founder. Four months later, serial entrepreneur Luca Schnetzler (Netz) purchased all copyrights of Pudgy Penguins for 750 ETH (approximately $2.5 million), finally bringing a glimmer of hope for the NFT project.

New Boss Helps Pudgy Penguins Weather the Winter

After taking over Pudgy Penguins, Luca Schnetzler (Netz) promised the community to "build the brand" and connect with everyday consumers, implementing a series of bold reforms, such as launching "Pengu" licensed trading, a collectibles marketplace, and various social media campaigns, aiming to transform the project into a true blue-chip NFT series.

At the end of April, Pudgy Penguins announced the launch of a new themed metaverse project and a themed map, followed by a new logo on social media, aiming for a "fresh start."

In August, Pudgy Penguins brought in executives from Nansen and Meta to its advisory board, including Nansen CEO Alex Svanevik, Saks Fifth COO Avenue RJ Cilley, Hasbro licensing head Jess Richardson, and Meta partnership team member Jordan Sterling. Luca Schnetzler (Netz) also announced the launch of physical merchandise to expand brand influence, such as Pudgy Toys plush toys and children's books.

In September, Pudgy Penguins partnered with international toy brand PMI Toys to launch a new line of physical toys called Pudgy Plushies. In early December, Pudgy Penguins collaborated with Sotheby's to launch "Snowed In: A Rare Pudgy Penguins Sale," where 10 NFTs were "snapped up" and generated nearly $129,000 in revenue, with an average sale price of $12,900, far exceeding the then floor price of about $1,300.

Overall, these initiatives have achieved good results. According to Luca Schnetzler (Netz), during this year's Christmas holiday, sales of Pudgy Penguins brand merchandise (including T-shirts, hats, and hoodies) saw significant increases, leading to plans for more toys and collectibles in 2023.

"Punk 9059," research director at NFT club Proof Collective, analyzed that the reason Pudgy Penguins performed well during this crypto winter is twofold: the project attracted a considerable number of influential people, and the project leaders adopted different strategies, "really focusing on making money and selling actual products, rather than just relying on NFT royalties while the project leaders relax all day."

Previously, there were reports that Pudgy Penguins was in talks with investors for a $10 million seed round financing through a Simple Agreement for Future Equity (SAFE). If the financing is completed, its valuation would reach $50 million, with plans to issue tokens and launch a new "Rogs" concept in April 2024. However, Luca Schnetzler (Netz) denied any financing but stated that part of the project's profits would be returned to NFT holders, emphasizing a transparent leadership approach to make it "one of the largest NFT brands in the world."

Interestingly, as the floor price of Pudgy Penguins rose to a historic high, its sister project Lil Pudgys also saw a "rising tide," with the floor price reaching 0.59 ETH, up 22.92% in the past 24 hours, setting a new historic high in terms of ETH. Additionally, the current market cap of this NFT series has risen to $15.51 million, with a total trading volume of $12.95 million.

Conclusion

Pudgy Penguins may be the only NFT project that has performed well and maintained a rising floor price throughout the entire crypto winter. However, whether this trend is merely a fleeting "Christmas craze" or can be sustained remains to be seen. Regardless, the success of Pudgy Penguins undoubtedly serves as a shot in the arm for the NFT market, which is currently in a deep bear phase, as the project team is finally taking action rather than resting on their laurels under the new boss's leadership.