Quick Overview of Binance HODLer Issue 5 Airdrop Project Pudgy Penguins (PENGU)

Author: Golden Finance

On December 16, 2024, Binance announced that the Binance HODLer airdrop has launched its 5th project, Pudgy Penguins (PENGU), an NFT (non-fungible token) collection built on Ethereum.

From December 09, 2024, 08:00 to December 13, 2024, 07:59 (UTC+8), users who purchase regular and/or flexible products on the Earn platform using BNB will receive airdrop allocations. HODLer airdrop information is expected to go live within twelve hours, and the new tokens will be distributed to users' spot wallets one hour before trading begins.

Binance will list PENGU on December 17, 2024, 22:00 (UTC+8) and open trading pairs against USDT, BNB, FDUSD, and TRY. Seed tag trading rules apply.

1. PENGU HODLer Airdrop Details

• Token Name: Pudgy Penguins (PENGU)

• Total Token Supply: 88,888,888,888 PENGU

• Maximum Token Supply: 88,888,888,888 PENGU

• Total HODLer Airdrop Tokens: 2,666,666,666.64 PENGU (3% of the maximum token supply)

• Circulating Supply Before Listing on Binance: 623,125,000 PENGU

• Smart Contract Details: Solana, 2zMMhcVQEXDtdE6vsFS7S7D5oUodfJHE8vd1gnBouauv

• BNB Holding Cap: Individual user's average BNB holding / Total average BNB holding * 100% ≤ 4% (If the holding ratio exceeds 4%, the BNB holding ratio will be calculated at 4%)

2. Introduction to the Pudgy Penguins Project

What is PENGU, the Pudgy Penguins Token?

PENGU is the native cryptocurrency token launched by Pudgy Penguins, a popular NFT project aimed at expanding its influence in the blockchain ecosystem. PENGU is released on the Solana blockchain, designed to drive community engagement and support the project's broader goals.

Key Points

• PENGU is the official token of the Pudgy Penguins NFT series, which includes 8,888 unique and adorable penguin cartoon images.

• The Pudgy Penguins NFT series was initially launched on the Ethereum blockchain and has grown to become one of the largest NFT projects by market capitalization. It has recently surpassed BAYC to become the second-largest NFT project by market cap.

• PENGU will be launched on the Solana blockchain, aiming to expand the project's community and attract new users. There are plans for multi-chain deployment, extending to other blockchain networks including Ethereum and Abstract.

Pudgy Penguins, one of the largest NFT series based on the Ethereum blockchain, will launch its native token -- PENGU. While Pudgy Penguins is not the first major NFT project to launch a native token, it has withstood the test during the "NFT winter," ultimately becoming the second-largest NFT project by market cap, just behind CryptoPunks.

3. Unique Aspects of the PENGU Token

1. Short Preparation Period

Although rumors about Pudgy Penguins planning to launch a token have circulated for years, the official announcement was made only on December 5, stating that PENGU would officially launch in 2024.

Typically, airdrops related to assets or ecosystems have a long preparation period (months or even years) and strong signals indicating the token's launch, or they lock airdrop eligibility by announcing a snapshot date. However, PENGU did not take this route.

This sparked a heated reaction in the NFT market:

• The floor price of Pudgy Penguins rose from about 16 ETH (approximately $61k) to 23 ETH (approximately $83k).

• The floor price of Lil Pudgies (its sub-series) increased from about 1.7 ETH (approximately $6.5k) to 2.5 ETH (approximately $9k).

Data source date (December 10)

4. Token Positioning

Is PENGU a meme coin, a utility token, or a cultural token?

It seems to embody all three, and may take on more roles in the future. Currently, it is described as the official token of Pudgy Penguins, serving this NFT project positioned as "the face of cryptocurrency."

While calling itself "the face of cryptocurrency" is a subjective claim, Pudgy Penguins does have solid foundations to support this statement:

• 34 billion GIF views: Almost everyone has seen Pudgy Penguins GIFs;

• 1.6 million Instagram followers: Content is cute and resonates well;

• 522,000 TikTok main account followers, and 1.1 million Pudgy Kindness account followers;

• Over 1.5 million Pudgy toys sold globally, available at retailers like Walmart, Target, and Amazon.

For those who have not ventured into cryptocurrency, PENGU offers a new way for fans of Pudgy Penguins to establish a deeper connection with the characters, brand, and intellectual property (IP), beyond just purchasing toys or interacting with content.

This aligns with my earlier point that "cryptocurrency is a better stock." Holding PENGU tokens can be seen as a new way to become an owner or stakeholder in the Pudgy Penguins brand, similar to the meaning of purchasing company shares.

For some, this is an investment; for others, it is a way to express fandom; or both. Additionally, as the brand grows, the token's utility may further expand.

5. Token Economics

Pudgy Penguins showcases its token economic model in a novel and engaging way, rather than through a traditional 20-page white paper and pie charts.

This cute style perfectly reflects the brand characteristics of Pudgy Penguins.

• Total Supply: 88,888,888,888 (8.89 billion), paying tribute to the original Pudgy Penguins series of 8,888 NFTs;

• Claim Period: 88 days.

Two allocation details stand out:

1. Other Communities:

About 24% of the tokens will be allocated to "other communities," which is comparable to the allocation for the Pudgy holder community (about 26%).

On the surface, this may seem unfair to the Pudgy community, but the distribution range explains this decision:

• The Pudgy holder allocation will cover about 15,000 wallets;

• The other community allocation will target about 5 million wallets.

This sharply contrasts with the analysis by 6th Man Ventures on token design and distribution, which found that large-scale airdrops often perform worse compared to airdrops focused on core users.