TREND May 2023

Pudgy Penguins: downfall and recovery of an NFT project to today's success

Since its launch in July 2021, Pudgy Penguins has proven to be a constantly evolving NFT project. Initially, it achieved great popularity during the NFT bull rush, but also faced times of uncertainty and challenges on its way to current success. However, through a combination of strategic leadership changes, innovative efforts and strategic collaborations, Pudgy Penguins has managed to reinvent itself and build a strong community around its intellectual property (IP).

In this article, we will explore the trajectory of Pudgy Penguins, from its acquisition by entrepreneur Luca Netz to its recent raising of $9 million in a seed round led by 1kx. We'll find out how this project has managed to scale its team, expand its intellectual property (IP) through physical products and live events, and establish key partnerships with talent agency WME.

Join us on this journey through the history of Pudgy Penguins and its transformation into a successful brand in the exciting world of NFT!

Discover the Fascinating World of NFT Pudgy Penguins

Dive into the intriguing universe of the Pudgy Penguins, an NFT project that has caused a stir and has recently been reborn with a vengeance. These adorable collectible penguins make up a unique collection of 8,888 creatures generated on the Ethereum network. Each one is an ERC-721 token, the standard for non-fungible tokens on the Ethereum platform.

The Pudgy Penguins project was launched on July 22, 2021, and has since captivated the attention of numerous cryptocurrency enthusiasts. These cute seabirds are randomly generated from over 150 hand-drawn features, ensuring their uniqueness and appeal.

Within this collection, the five rarest Pudgy Penguins possess special features: one of them sports a banana costume, another a shark costume, another a pineapple outfit and another a ghost costume. In addition, one of them stands out by facing the opposite direction from all the other penguins, giving him an even more unique character.

The talented creators of the Pudgy Penguins are a group of anonymous founders, who sign their art under recognizable pseudonyms. They include Mrtubby, an NFT collector and computer science student; Mickyj, a design lead and college senior; Jonah, a college sophomore; Cole, a digital entrepreneur and also an NFT collector; and Miinded, a talented web development and smart contracts team.

Pudgy Penguins' popularity skyrocketed at its peak, reaching a daily average sales of 3.8 ETH and a weekly transaction volume that rivaled renowned NFT projects such as CryptoPunks and Bored Ape Yacht Club. This phenomenon coincided with the booming trend of custom profile NFTs (PFP) in the cryptocurrency ecosystem.

PFP projects have gained great popularity because their owners often use the acquired digital artwork as avatars on their social media profiles, especially on Twitter. These projects create thousands of unique pieces of art, each with a variety of different traits and quirks. Some of the rarest artwork from these popular projects have fetched staggering prices of up to 50 ETH or more.

Among the most well-known PFP projects is the celebrated Bored Ape Yacht Club, whose prestige has attracted the likes of Stephen Curry and Eminem, who have acquired their own Bored Ape. In this context, the Pudgy Penguins emerged as a PFP project that was consolidated thanks to the success of BAYC, managing to sell out completely in just 20 minutes. In just one week, the minimum price of Pudgy Penguins skyrocketed to 2.4 ETH, making it one of the most valuable NFT projects at the time.

However, the Pudgy Penguins were not without controversy. After their minting, the community discovered that Cole Thereum, one of the founders, failed to deliver on the promises set out in the project's roadmap, such as the creation of a game, a token and an educational book about NFT. In addition, he is suspected of depleting the project's treasury funds. These events generated distrust and caused a drop in the minimum price of Pudgy Penguins.

In the midst of this scenario, an owner of 200 Pudgy Penguins, known on Twitter as @9x9x9 twitter, revealed that the founders offered him intellectual property rights for 888 ETH, which generated chaos in the community as it was an offer made without prior notice to NFT owners.

Recently, however, the Pudgy Penguins rose from the ashes when Luca Schnetzler acquired the entire collection for 750 ETH. Schnetzler shared that he was personally attracted to the artwork and idea behind the Pudgy Penguins, which motivated him to acquire them from the former team. The new team, led by Schnetzler, has announced that it will develop the Pudgy Penguins' Web3 brand, launching products, events and new experiences for owners of these endearing penguins. This announcement attracted numerous collectors, which in turn caused rock bottom prices to skyrocket in recent weeks.

If you want to get your hands on a Pudgy Penguin, you'll need to look into NFT's secondary marketplaces, such as OpenSea. There, you'll be able to connect your Web3 wallet, such as MetaMask, and use cryptocurrencies to acquire the NFT of your choice. It should be noted that some Pudgy Penguins are rarer than others and therefore more valuable. For example, there are 357 Pudgy Penguins with headbands, but only 58 possess a crown. Consequently, crowned penguins are more expensive than those with headbands.

Purchasing an NFT involves competing in auctions against other users or buying it directly at the price set by the seller. However, by winning the bid, you will join "The Huddle", the select club of penguin owners. As with any NFT project, it is essential to thoroughly research and understand the project and those involved before investing.

Pudgy Penguins NFTs experienced 83% increase

In August 2022, the Pudgy Penguins NFT collection experienced an 83% increase in its minimum purchase price in just two weeks. The rarest NFT in the collection sold for over $600,000. Since launching in June 2021, Pudgy Penguins have been hard at work on various long-term efforts, and are finally starting to see the results. Pudgy Penguins CEO Luca Netz expressed his satisfaction and mentioned that it feels like their dedication over the past six months is finally paying off.

Expansion plans, restructuring and progress

The collection has plans for brand expansion, including the creation of physical stuffed animals and a children's book. In addition, they have announced collaborations with Non-Fungible Films to bring the Pudgy Penguins to life. Recently, PFP Penguins specific to the "Pudgy Toys" line were announced and a Pudgy NFT marketplace of their own was launched.

In addition, the collection has formed an advisory board comprised of nine prominent members of the technology industry, including executives from companies such as Nansen, Saks Fifth Avenue, Hasbro and Meta.

These developments have boosted the growth and visibility of Pudgy Penguins, generating positive expectations for the collection's future.

Pudgy Penguins growth

Next, we highlight the growth of Pudgy Penguins through funding, the expansion of its intellectual property and the signing of strategic agreements with talent agency WME. The leadership change it has undergone has been instrumental in enabling the expansion and development of the brand.

Pudgy Penguins raises $9 million for Intellectual Property (IP) expansion

Pudgy Penguins recently raised $9 million in seed funding in a round led by investment firm 1kx, with participation from other major investors. This funding will allow Pudgy Penguins to expand its team and intellectual property (IP), suggesting that they are looking to develop and expand the brand in different areas.

In addition to physical products such as hoodies and sunglasses, Pudgy Penguins has licensed its IP for live events. There is also mention of a toy line called Pudgy Toys in the works. This indicates that Pudgy Penguins is exploring different ways to extend its brand and create products related to its IP.

Agreement with talent agency WME

Pudgy Penguins has been retained by talent agency WME for representation. This type of arrangement suggests that Pudgy Penguins may be looking to expand its intellectual property (IP) through mediums such as film, television and games, following the trend of other NFT projects that have become recognized brands.

Leadership change

Pudgy Penguins ousted its original founders in January 2022 and that a new leadership led by Luca Netz, along with other collaborators, took over the project. This change in leadership allowed for a token launch, airdrops and new product development to expand the brand and take advantage of new growth opportunities.

Conclusion

Despite the downturn in the cryptocurrency market and previous controversies, Pudgy Penguins has managed to stay in growth. The project has launched physical toy projects, established an advisory board with leaders from Meta and Hasbro, and recently signed a deal with Hollywood talent agency WME to expand into media.

Pudgy Penguins has proven to be an exceptional project in the midst of the general NFT slump, as its value has increased rather than decreased. The team has been nimble in its approach and has generated total deal volume of around $250 million. CEO Luca Netz sees the project as an influencer and is looking to expand its influence and reach an even wider audience.

With its sustained growth and ability to withstand market difficulties, Pudgy Penguins is building for the future and working to become a major IP with a passionate community and diverse product and entertainment media extensions.

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