Pudgy Penguins coin: An introduction to this meme-based crypto
Jan 13, 2026・5 min read
The Pudgy Penguins (PENGU) coin didn’t begin like a typical crypto token created for a decentralized finance platform or new blockchain. Instead, this token comes from a popular non-fungible token (NFT) collection called Pudgy Penguins, which later expanded to include physical toys, games, and global brand partnerships. As that ecosystem grew, PENGU was introduced to give its community a common currency.
This unusual origin leaves many people unsure about PENGU’s utility and long-term value, especially as it behaves like a volatile memecoin. In this article, we’ll explain how the Pudgy Penguins coin works, and talk about what current and potential PENGU holders should know.
What’s the Pudgy Penguins coin?
PENGU is a Solana-based native meme and utility token, created to extend the original Pudgy Penguins NFT project into a broader, token-powered ecosystem. As the Pudgy Penguins brand changed ownership and moved beyond collectibles into physical toys and metaverse experiences, PENGU became the currency that ties those disparate pieces together.
This token launched in December 2024 with a community-first distribution, and was built on Solana to benefit from that blockchain’s speed and low transaction costs. At launch, 25.9% of the fixed 88.88 billion PENGU supply was allocated to the existing ecosystem. Early supporters got an immediate stake in the token through an airdrop to Pudgy Penguins, Lil Pudgys, and Pudgy Rods NFT holders and selected community wallets.
How did Pudgy Penguins evolve?
Pudgy Penguins started in July 2021 as an 8,888-piece hand-drawn NFT collection on Ethereum, with a founding team led by Cole Villemain (known as Cole Thereum). After community backlash, when collectors received Pudgy Rods instead of new Pudgy Penguins in a Christmas Day airdrop, the community voted to take ownership away from the original creators.
The project was put up for sale in a public auction, and acquired in April 2022 by entrepreneur Luca Schnetzler (known as Luca Netz) for 750 Ethereum (ETH). Luca transformed Pudgy Penguins from a struggling NFT drop into a consumer-facing brand with bigger IP potential. Under Netz’s direction, Pudgy Penguins launched Pudgy Toys for retailers like Walmart and Target.
The brand continued expanding through partnerships with companies like DreamWorks and Mythical Games. At time of writing, Pudgy Penguins is beta-testing digital experiences like Pudgy World and Pengu Clash, turning the collection into a cross-platform ecosystem.
What’s PENGU used for today?
Right now, PENGU’s most active uses are memecoin trading and community identity. Holders treat this coin as both a speculative asset and a social badge that signals participation in the community or “huddle,” which has more than 170K active Discord members.
PENGU also plays a key role in the brand’s gaming layer. In Pengu Clash, a Telegram game built on the TON blockchain, PENGU is used for campaign rewards and ecosystem incentives. And inside Pudgy World, a browser-based metaverse, PENGU is used for buying traits and cosmetics, as well as participating in platform activities.
Other utilities are still in development – the team behind PENGU has plans for native staking, creator rewards, and governance tools that would let token holders influence brand decisions and earn additional benefits.
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Why was PENGU launched on Solana?
The Pudgy Penguins coin used Solana because building on this network offers the scale and speed needed for an ecosystem that spans gaming, virtual worlds, and high-volume community activity.
Solana also offers:
- Low transaction costs: Users can make frequent, small purchases of traits, cosmetics, and event interactions without worrying about high fees.
- High throughput: Solana can handle high transaction and trading volumes, which improves the experience inside Pudgy World and other interactive products.
- Memecoin momentum: From 2024–2025, Solana became the center of memecoin trading, giving new tokens like PENGU immediate liquidity and visibility.
- Retail-friendly environment: Many brands now release community tokens on Solana, because it’s a user-friendly platform that suits both beginners and experienced traders.
How does PENGU fit into the overall NFT ecosystem?
PENGU strengthens the NFT ecosystem by giving Pudgy Penguins collectors crypto they can use to trade or participate in digital activities. The initial airdrop gave a meaningful share of PENGU’s supply to NFT holders, tying the token directly to the community that built its brand.
From there, PENGU adds a functional layer on top of the NFTs. Holders can use this currency inside games and metaverse products, and upcoming projects will likely expand that utility. This shifts the collection from a focus on NFT ownership to a border economy, where PENGU use drives engagement across the broader Pudgy Penguins ecosystem.
Why are investors interested in PENGU?
In 2025, investment firm Canary Capital proposed a spot PENGU exchange-traded fund (ETF), which would package PENGU tokens and Pudgy Penguins NFTs into a single product. This filing is still under consideration, but it marks a notable moment for the brand.
Traditional institutions rarely explore products built around meme-driven IPs. But Pudgy Penguins draws attention because it blends retail culture, gaming, physical merchandise, and blockchain assets, giving the brand a wider presence than most NFT projects.
The ETF proposal reflects that reach, as it would introduce Pudgy Penguins to audiences far outside the world of Web3 and show that there’s interest in financial products involving both tokens and NFTs.
What are PENGU’s key market factors and risks?
The Pudgy Penguins coin price has so far followed a pattern common to new meme-driven tokens. It opened with a bullish rally after its December 2024 launch, then the cost fell quickly as airdrop recipients started to sell.
Since then, the token price has shown high sensitivity to community news. Announcements from the Pudgy Penguins team, updates to Pengu Clash, spikes in social media activity, and even shifts in NFT market sales cycles have all produced fast price movements – both upward and downward.
Its market cap has fluctuated between $233 million and $2.2 billion. The main NFT collection’s floor price tends to move in parallel, especially during major PENGU-related events, showing how tightly the two assets are linked in community sentiment.
That matters because, for memecoins, sentiment often drives the market. Liquidity also varies widely across market cycles, which can accelerate price swings. That’s one of the reasons some people rely on trading bots to automate entries and exits during periods of high volatility.
Some traders approach tokens like PENGU with caution, because the crypto market has a long history of scams and rug pulls. Others embrace NFTs and associated tokens, since early successes like CryptoPunks and community-driven ecosystems like Shibarium helped prove that digital collectibles and memecoins can build real communities.
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PENGU is closely tied to the pre-established Pudgy Penguins ecosystem, but it’s still a speculative, high-volatility token. It’s also growing quickly, and future integrations will likely change how the token is used. If you’re interested in PENGU, stay updated with the community’s official channels, and review credible sources before making an investment decision.
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Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.