Pudgy Penguins is one of the most expensive NFT collections on the OpenSea marketplace, and the project has just been sold for the equivalent of $2.5 million in ETH. Find out everything you need to know about this collection.
You may not know the Pudgy Penguins yet, but this NFT collection could be one of the most expensive in the world alongside the Cryptopunks or the Bored Ape Yacht Club. The project has just been purchased by Los Angeles-based entrepreneur Luca Netz for 750 ETH (about $2.5 million at current prices).
This investment gives Luca Netz control of the project and royalties. The businessman buys the Pudgy Penguins collection from the four original co-founders of the project. It will now be The Huddle’s new leader alongside collaborator Cameron Moulène and several other Pudgy Penguins holders.
By taking control of the project, Netz’s group is able to launch A cryptocurrency token linked to this NFT collection and to organize “airdrop” distributions . Several other rights are granted to him.
This agreement follows a conflict between the creators of the project and the fan community. In January 2022, via a Discord vote, the collectors chose to dismiss the founding team. Since then, Pudgy Penguins owners have been waiting to hear about the future of the project.
The agreement between Netz and the four founders took longer than expected, as Netz himself admits, but it is now finalized. Since the emergence of rumors about the confirmation of the buyout, trading of NFT Pudgy Penguin on the NFT marketplace has reached a peak. The floor price has jumped to 2.5 ether, while it was hovering between 0.7 and 1.4 ETH in the previous weeks. The Penguin is currently listed at 2.2 ETH.
To avoid suspicion of an April Fool, Netz preferred to wait until April 2, 2022 to officially confirm the sale on social networks. However, traders did not wait for the green light to go wild.
According to the contractor, ” everything is aligned to make this one of the most important projects of all time ” . He refuses, however, to reveal his roadmap…
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What is the Pudgy Penguin Collection?
Launched in July 2022, Pudgy Penguins is quickly became one of the most popular NFT collections. It represents over 49,000 ethereum in trading volume on the OpenSea marketplace, which is worth $171 million at the current ETH price.
This collection was notably used by the New York Times to showcase the NFT phenomenon. Among the holders are several celebrities like the rapper Tory Lanez or the NBA basketball player Steph Curry.
She represents a character of penguin, dressed with accessories selected randomly.
Gem Sweep! 29 Pudgy Penguins bought for 68.2852 ETH https://t.co/5pGSE2eQn0 pic.twitter.com/VmZdzvPGYM
– GemBot 💎🧹🤖 (@0xGem) April 1, 2022
Chronicles of an internal conflict
The community of NFT Pudgy Penguin holders, also known as “The Huddle” or “Pengus” , has had a complicated time. On several occasions, the collection was accidentally removed from the OpenSea platform and sales declined. For this reason, the community called for a more competent leader.
According to multiple sources, the founding team of Pudgy Penguins made many promises to the community. These included a children’s book, a cryptocurrency token, and a metaverse game centered around the character. Unfortunately, none of these projects have come to fruition.
At the same time, other NFT projects like Bored Ape Yacht Club and Cool Cats have seen a meteoric rise in price. The Pudgy Penguins owners have been disappointedwith the impression that they bet on the wrong horse. However, co-founder Cole Thereum has repeatedly ignored their requests for an explanation via Twitter.
The tension came to a head on Christmas Day, when a highly anticipated airdrop revealed NFTs of fishing rods. According to the Community Manager of Pudgy Penguins, named ActuallyAgents, this was the last straw. Many Penguins owners were hoping for the announcement of a video game and were deeply disappointed.
In January 2022, Twitter user 9x9x9 holder of the very rare Banana Penguin wrote a series of messages through which he suspected the founders of Pudgy Penguin of having emptied the project’s treasury. He then offered to sell him the project for 888 ETH.
These revelations have unleashed the anger of the communityand so the founders were banned after a vote on Discord. Since then, the price floor has collapsed below 0.5 ETH.
A fierce bid to buy the project
Following this vote, the chaos fell on the community. The various auctions to buy the project were divisive. In early January 2022, Luca Netz offered 750 EHT to buy the collection. Other bids have been made, such as that of Zach Burks, founder of Mitnable, or that of the influencer BeanieMaxi.
Another trader nicknamed Vincent Van Dough announced the “wrapping” of his 50 penguins to cut short the royalty payments made by the founders of the project. His goal was also to accelerate the formation of an autonomous central organization (DAO).
Wrap it up @WrappedPenguins pic.twitter.com/y78LHG2K0Z
– VincentVanDough (@Vince_Van_Dough) January 8, 2022
Wrapping refers to a Smart Contract taking an asset to produce a parallel asset. In this case, this technique allows a penguin holder to maintain the aesthetics of his NFTs while by cutting the links with the original contract ERC-721. The wrapped penguins can however be reconverted at any time. Soon, more than 560 penguins were Wrapped, that is 6% of the project.
To top it off, Van Dough offered to sell Burks his Shark Penguin with a promise to stop the Wrapping movement. Several members preferred to leave the project in front of these internal tensionslike 9x9x9.
Luca Netz: new leader of the Pudgy Penguin project
Luca Netz’s first NFT purchase was a Pudgy Penguin. He was attracted by the joyful character of this collectionand bought his first penguin in the summer of 2021 for about 0.1 ETH. According to him, ” NFT collections that inspire emotions are the most powerful ” .
Previously, the entrepreneur made his fortune with a dropshipping business …a successful dropshipping business. Now he plans to lead the marketing of the project and turn Pudgy Penguins into ” a brand known both inside and outside the NFT world ” .
The businessman did not reveal his plans, but left a clue. When asked if he planned to launch a toy featuring Pudgy Penguinhe stated that it would be ” fiscally irresponsible “if he didn’t do it…
Will there be a Pudgy Penguin token?
$PENGU COMING 2022
Pudgy Presents are revealing and will play a vital role in the story of Pudgy Penguins! View them here: https://t.co/BJRG1UxxHy pic.twitter.com/FP8NR3cJ3f
– Pudgy Penguins (@pudgypenguins) December 25, 2021
For a long time now, Pudgy Penguins fans have been waiting for a token cryptocurrency related to the NFT collection. As GiganticRebirth, an influential community member and holder of the Ghost Penguin, explains, ” the expectation of tokenziation fosters speculative fervor ” .
The launch of such a token would allow Pudgy Penguin to follow in the footsteps of Yuga Labs and its Bored Ape Yacht Club project. In early April 2022, the startup launched its ApeCoin token. For now, however, Netz refutes these rumors. It does, however, state that the token will prioritize compliance with the law if it sees the light of day.
What future for the Pudgy Penguin project?
After all these dissensions, and following the purchase of the project by Netz, the Pudgy Penguin community begins a new chapter with an eye to the future. Twitter user “ActuallyAgents says” very optimistic and confident in Luca and the team he has assembled ” .
According to this influential member, Luca Netz brings ” a much needed philosophy of compassion and inclusiveness ” . However, only time will confirm its capacity to carry out the projects announced by the founders of the collection…