This month, the official sale of the entire Pudgy Penguins brand was confirmed, changing hands in a very public transaction. After a rocky road in recent months, the move has spurred some serious attention around the collection and hopes that it could get the lovable penguins back on track in the blue-chip collecting community.
Here is all you need to know about the collection, the sale, and why the purchase is significant for the NFT community.
What Are Pudgy Penguins?
Pudgy Penguins is an Ethereum blockchain-based NFT collection made of 8888 unique tokens. Each one contains an image of a- you guessed it- penguin. Like most blue-chip collections, every penguin has a different set of features- from facial expressions to accessories and clothing.
It launched in mid-2021 and quickly became one of the best-loved and most coveted collections of all. In a short time, the Pudgy Penguins collection amassed a trading volume of over 49,000 ether, or around $171 million US.
The Huddle- a name given to Pudgy Penguins owners, along with the loving nickname, Pengus, was a major community that heavily backed the collection as it grew.
Pudgy Penguin #6873 is the highest-selling token- so far- going for $469,000. On average, the penguins sell for around $6,700.
You may be wondering why such a collection would be in need of a takeover. Unfortunately, controversy and poor leadership led the penguins down an icy path. Following the staggering success, issues such as sudden de-listings under suspicious circumstances, unfulfilled promises to holders, and a tumble in sales plagued the collection and shook the loyalty of The Huddle.
Pudgy Penguins founder Cole Villeman (going by ColeTherum) was also hit with controversial allegations of bribery and poor practices. In the end, there was high pressure for Villeman to be removed from the head seat of the project.
About the Sale
Luca Netz of Netz Capital proposed the sale publicly on Twitter, goading ColeTherum to ‘make the next move’. Following the offer, Villeman confirmed that he was no longer involved in the project following a vote to remove him and four other founding members.
The remaining leadership believed the Netz had the necessary experience and connections to take Pudgy Penguins to where it needs to be. The offer of 750 Ether (around $2.5 million) to sweeten the deal was likely another motivator.
Some see the news of the new ownership as exciting- especially those who currently hold a Pudgy Penguin in their wallets. Others worry that Netz does not have the affiliation with the project that the leadership needs, considering the name was not prominent in the community prior to the sale.
What Comes Next?
By confirming the purchase for a hefty price, Netz Capital takes over the ownership and leadership of the penguin project, along with royalties from secondary sales. It remains to be seen exactly what changes to the structure can be expected, but holders are hopeful that it signals the end of the issues that have dragged the collection down so far in 2022.
The announcement (which was delayed by one day to avoid people thinking it was a prank!) came on April 2nd and has launched many discussions. One hope is that it could drive prices up: something that has already happened in the first few days of this month.
Additionally, talks of the $PENGU token launching before the end of this year have increased, with many people believing it is one of the main factors that led to the sale. If it is true, it would mean Pudgy Penguins elevating to a whole new level- something the remaining founders and leader have expressed a desire for during the announcement.
Whether you are already a member of The Huddle or you just have an interest in NFT news, the Pudgy Penguins are ones to watch. If the Netz Capital takeover delivers on the expectations, the sky is the limit for this already successful blue-chip collection. Let us hope that the recent controversy and troubles have passed, and the future is bright.
In the words of the penguins themselves, the blizzard has passed and the snow is settling. We hope that weathering this storm was worth it, and they are out the other side!