NFTs, along with the broader crypto industry, have had a downright terrible year. As per a Bloomberg report, the trading volume of the NFT market fell from $17 billion to $466 million between January and September 2022, which equates to a whopping 97 percent drop.
However, one project that has managed to buck the trend and register astonishing growth in 2022 is Pudgy Penguins. This collection of hand-drawn penguins has seen a three-figure increase in its floor price over the last few months.
This week, the project saw a further surge in trading volume and even surpassed its all-time high floor price. These developments are quite surprising for a project that was almost completely written off a few months ago.
But what is Pudgy Penguins and why is it rallying while most other NFTs are suffering from the bitter crypto winter? Tag along as we tell you more about this project and its surprising rise from the ashes.
What is the Pudgy Penguin NFT collection?
Launched in July 2021, Pudgy Penguins is an Ethereum-based NFT collection consisting of 8,888 hand-drawn penguins. The project came into existence at a time when animal-inspired profile picture (PFP) projects, like the Bored Ape Yacht Club, had just shot to popularity. Therefore, Pudgy Penguins was an instant hit, with all its NFTs selling out shortly after they were released.
However, community interest was strong and investors began pursuing the collection on the secondary market. In Sept 2021, one investor is even reported to have paid 225 ETH for a piece from the collection. At the time, 225 ETH was worth nearly $1 million. However, the project failed to sustain this momentum and began a steep downward spiral.
The fall of Pudgy Penguins
Towards the of 2021, Pudgy Penguins was plagued by several internal controversies. For instance, there were rumours that the project’s co-founders had siphoned off funds from the Pudgy Penguin treasury. Further, one of the co-founders, Cole Villemain, was also suspected of carrying out undisclosed paid promotions for the project.
However, the final nail in the coffin was when crypto influencer 9X9X9 announced that Pudgy Penguins founders had offered to sell him the project for 888 ETH, an offer he turned down. The revelation sparked fears of a rug pull and a massive sell-off ensued, causing the floor price of the collection to tank.
The astronomical rise
A couple of months later, the project was sold to Luca Schnetzler for just 750 ETH, worth roughly $2.5 million at the time. Schnetzler is a well-known entrepreneur with several growth stories under his belt. Moreover, he was also a fan of the Pudgy Penguin project and made it his mission to turn the collection around.
Shortly after taking the reins, Schnetzler introduced several initiatives to boost the value of the collection. To begin with, he delivered Pudgy Media, a hub for all things Pudgy. He also created the Pudgy Yacht Party in Miami with popular rap artist, Tory Lanez. The project also introduced its range of toys and clothing. Shortly after, the Pudgy Penguins also had its own marketplace and Soulbound token.
All these developments caused the collection’s floor price to increase by 400 percent between Jan and August 2022, touching a high of 1ETH. This is at a time when most other projects registered dips of 50 to 90 percent. Moreover, the project continued to gain momentum over the next few months.
Most recently, between Dec 22 and Dec 28, the project’s floor price spiked another 50 percent, rising from 4.50 ETH to 6.90 ETH. On Dec 27, four pieces from the collection sold well above this floor price, fetching 40 ETH, 33 ETH, 27 ETH, and 25 ETH.
Conclusion
The last year and a half have been a rollercoaster ride for the Pudgy Penguins project and its investors. The collection went from the brink of collapse to being one of the top NFT collections of 2022, even eclipsing blue-chip NFTs like BAYC. It goes to show that strong community support is enough to fight bear runs and FUD.
Moreover, it also proves that good leadership and vision can affect amazing turnarounds, no matter the situation. These are learnings the rest of the crypto market could use right now.
