The highly anticipated PENGU token from the Pudgy Penguins ecosystem debuted on Solana this week. With an airdrop targeting millions of NFT holders and traders, PENGU quickly climbed into the top 100 cryptocurrencies by market cap. However, the excitement was short-lived as the token’s price plummeted throughout the day.
PENGU Price Drops Amid Sell-Off Frenzy
At launch, PENGU started at $0.068 but dropped 57% by the end of the day. This significant decline mirrors the behavior of other airdropped tokens. Over 20% of the total PENGU supply, worth around $9.3 million, has already been sold. Despite this, the token retains a substantial market cap of $1.8 billion.
Airdrop sell-offs are common as recipients often seek quick profits. However, PENGU’s rapid price drop is among the most severe in recent memory. Analysts predict that if selling pressure eases, the token’s value may stabilize at a new support level.
Pudgy Penguins NFT Collection Impacted
The sell-off hasn’t only affected PENGU tokens. The Pudgy Penguins NFT collection also saw its floor price fall to 17.2 ETH, even as daily sales spiked by 258%. This unusual activity reflects the aggressive buying of Pudgy Penguins NFTs in recent weeks by users hoping to qualify for the airdrop. Now, many are offloading their NFTs alongside the tokens.
Lessons from Similar Airdrops
PENGU’s steep decline echoes trends seen with other tokens like Movement Network’s MOVE and Magic Eden’s ME. MOVE dropped 50% last week after its Binance launch. Similarly, 80% of ME airdrop recipients sold their tokens immediately, driving prices lower.
Binance, the world’s largest crypto exchange, has faced criticism for listing low-cap airdrop tokens. These listings often lead to large-scale sell-offs, raising pump-and-dump concerns.
What’s Next for PENGU?
Despite the challenges, PENGU remains a major player with a robust market cap. If trading stabilizes and selling pressure subsides, the token might regain momentum. For now, both the token and its associated NFTs are navigating the turbulence of post-airdrop markets.
