PENGU drops 50% after airdrop liquidations

In its first hour of trading, PENGU volume soared to $474 million. Here’s what you need to know about the launch, listings on exchanges and how the market is reacting to the airdrop.

Launch of PENGU: strong sales pressure

A few weeks ago, the Pudgy Pengu team announced the launch of its token before the end of the year. This obviously left the market in full suspense due to the date of the event. Especially since yesterday, Monday December 16, Binance announced an imminent listing of the PENGU token with a reward for BNB holders.

This development sparked excitement within the crypto community as the PENGU token was launched and distributed a portion of its coins to the community through an airdrop. More precisely, the total supply of PENGU is 88.88 billion tokens.

Additionally, 25.9% of the total supply was allocated to the Pudgy Penguins NFT community, while 22% was reserved for the Solana and Ethereum communities. For its part, the Pudgy Penguins project team received 17%, subject to a one-year lock-up period and a three-year vesting period. Finally, 12.35% will be allocated to liquidity pools.

Market capitalization of the Pudgy Penguins token. Source: CoinGecko

An asset already badly shaken

However, unlike the latest listings on Binance which allowed several tokens to climb, PENGU’s market cap quickly fell. Indeed, because it went from $4.32 billion to $2.07 billion. The euphoria was short-lived.

The price of the token also dropped from $0.068 to $0.032. According to Nansen, this drop in value could be linked to selling pressure from airdrop beneficiaries. Indeed, the latter were driven by the lure of quick gain.

As seen below, the transaction volume related to sales clearly exceeded the number of transactions involving new purchases. If the selling pressure intensifies, the price of the altcoin could fall well below its current price.

Transactions you token Pudgy Penguins. Source: Nansen
Transactions you token Pudgy Penguins. Source: Nansen

Pudgy Penguins price follows the direction of the token

Prior to the airdrop and launch of the PENGU token today, the floor price of Pudgy Penguins NFTs reached an all-time high of 34.80 ETH. Currently, that equates to $100,000.

This therefore makes this NFT collection one of the most expensive at the moment. However, after the recent all-time high, the trading price for NFTs has fallen back to 18.50 ETH. Or approximately 43.60% less.

Floor price of Pudgy Penguins NFTs
Floor price of Pudgy Penguins NFTs. Source: CoinGecko

Furthermore, Lookonchain revealed that some traders took advantage of the volatility around PENGU. For example, one trader bought $5.36 million worth of tokens and sold them for $13.72 million in just 20 minutes.

However, such quick gains may not be repeated in the short term with the token still in bearish momentum.

Moral of the story: damp squib for the price after the explosion, happiness for the investors.

Disclaimer

Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult a professional before making any financial decisions.

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