The cryptocurrency market is currently focused on the Pudgy Penguins NFT collection and the newly launched PENGU token. Following its airdrop, the token attracted significant interest but subsequently lost over 50% of its value due to rapid sell-offs on exchanges.
PENGU Token Value Drops from Day One
The PENGU token began trading at US$0.068 immediately after distribution. However, within hours, it plummeted to US$0.031, resulting in a severe loss. This decline reduced the token’s market value from US$2.3 billion to US$1.7 billion, with a nearly 60% drop in price over the last 24 hours. Despite being listed on major platforms like Binance, OKX, and KuCoin, the selling pressure could not be alleviated.
Data from DexScreener indicates that selling pressure significantly outweighed purchasing activity. Over 111,000 sellers surpassed 59,000 buyers. According to the on-chain analysis platform Lookonchain, airdrop farmers rapidly sold their tokens using multiple wallets, reaping substantial profits. One investor reportedly made US$13.7 million by selling 5.3 million PENGU tokens within just 20 minutes, contributing to price fluctuations.
NFT Prices and Market Rankings Decline
The drop in PENGU token value has negatively affected the Pudgy Penguins NFT collection. The floor price of the NFT collection fell from 33 ETH to 16 ETH, causing it to drop from second to third place in market rankings. The Bored Ape Yacht Club reclaimed the second spot with a floor price of 18.89 ETH.
The decline in the NFT market adversely impacts the overall outlook for collections. Analysts note that rapid sell-offs are pushing prices down. While investors focus on realizing profits, collection owners are striving to minimize losses.
These developments highlight the volatile nature of the cryptocurrency market. Investors are urged to take cautious steps in light of the market’s unpredictable nature. Such sudden price drops emphasize the importance of trading imbalances in a free market environment.
