Clearly, the NFT market is moving to another stage in its short development. The explosive euphoria of the past year seems to be replaced by more strategic operations. Especially in the case of some popular collections, whose community and "leaders" are trying to rethink the internal dynamics in order to face the current consolidation phase. Because the challenge is to survive, once the downturn is underway with investors who are sometimes close to overdose. And it is currently the turn of the Pudgy Penguin to undergo a major transformation towards new horizons.
The speculative bubble that made everything concerning NFTs soar in 2021 seems to have deflated at the beginning of this year. This is an opportunity for the associated projects to take a few moments to go through the indispensable stage of "assessment and perspectives". A sometimes painful operation, as in the case of the play to earn game Axie Infinity (AXS and SLP). The latter is currently stuck between crisis of its tokenomics facing the market decline and historical attack of its network Ronin at the end of last week.
But things seem somewhat different in the case of NFT collections with multiple and random rarities. Especially since the redesign of the Bored Ape Yacht Club project, against the backdrop of the highly oversold launch of its native cryptocurrency (APE). Alongside all this, the unexpected takeover of the iconic CryptoPunks collection and the more questionable Meebits, both produced by the Larva Labs studio. And obviously, this unprecedented move has given other investors ideas.
Between success and community crisis
In the small list of NFT collections that are resisting the current market downturn are the Pudgy Penguins. A horde of penguins with random and improbable rarities, if one lingers two seconds on the subject. But also one of the main symbols of the frenzy that took over this sector last year. And this by offering to its detractors the possibility to place as an example one of these inhabitants of the ice floes, to criticize the blind speculative madness.
But at the same time, the Pudgy Penguins project has offered good returns to its first-time investors. And especially to those who had the good idea to buy a few copies during its mint last July at 0.03 ETH per unit. Because they still show a low price close to 3 ETH at the time of writing this article. And a global volume of transactions on the Opensea platform that exceeds 50,000 ETH (over 176 million dollars). But with an average price still closer to 1 ETH since the beginning of the year.
However, not everything has been rosy on the ice. Because the community behind this collection has simply thanked its founding team, following a controversial vote in January. An icy putsch carried out on its official Discord account. The main reason given was the total lack of respect for the promises made when the project was launched. Namely: a children's book with its characters as heroes, but especially a native cryptocurrency and a dedicated metaverse. But all of this could well become real again, following its recent takeover.
Buyout of the collection for $2.5M
Because obviously the period is for mergers, but especially acquisitions in the NFTs sector. With an operation in progress for several months already for the Pudgy Penguins project. The latter mainly initiated by the lack of management structure at the head of this iceberg in perdition, since the revolt of its 8888 palmipeds. But "this agreement took much longer than expected," according to Luca Netz at the origin of this initiative. And it was, still according to him, preferable not to announce it around January 1, so as not to pass for "an April fool's joke." Because his investment structure has officially acquired the management of this collection, for the sum of 750 ETH (about 2.5 million dollars).
Luca Netz's stated goal is to make the Pudgy Penguins "a well-known brand both inside and outside the world of NFTs." That is, along the same lines as the Bored Ape Yacht Club (BAYC) a few weeks ago. But obviously, without the same striking force. All of this is driven by an assumed marketing dynamic, fueled by the collection of royalties affiliated with the promotion of this horde of "Huddle." As, for example, with the establishment of a series of toys in the effigy of these penguins. A new strategy that the holders of copies of this collection hope to benefit the project.
A native cryptocurrency?
But not everyone is necessarily of this opinion. And some members of the community believe that this operation is ultimately just a way to legally exit the project offered to its controversial founders. Or, according to the Twitter account 9x9x9, "a painkiller given to cure cancer." For now, no real roadmap has been announced in the context of this takeover. And even though everyone expects a cryptocurrency as the solution to all these problems, Luca Netz explains that "it's not something he wants to tackle right now." Even though he states at the same time that it will be done, "within the law."
Will this buyout be a good thing for the Pudgy Penguin project? At the very least, it will reinvigorate a development strategy that has been neglected for months. But Luca Netz's marketing ambitions should not be realized at the expense of his collector community. Because many of them say they are considering leaving the company in case of new disappointments.