PENGU, the Solana-based token tied to the Pudgy Penguins ecosystem, is drawing renewed attention from crypto traders and analysts who argue the asset is undervalued despite a broader cooldown in meme coin speculation.
Summary
- “I don’t see this as an area you should be shorting,” Sherpa said about PENGU.
- PENGU’s appeal extends beyond short-term speculation, citing the strength of the Pudgy Penguins brand itself, Awan says.
- Pudgy Penguins began in 2021 as a collection of 8,888 cartoon penguin NFTs launched on Ethereum during the height of the NFT boom.
Well-known trader Altcoin Sherpa said PENGU does not present an attractive short opportunity at current levels, pointing to its position in a high-volume trading zone and what he described as relatively strong fundamentals. Instead, he favors accumulation, particularly if broader market conditions improve.
“I don’t see this as an area you should be shorting,” Sherpa wrote on X. “It’s a high-volume area on volume profile and it still has a ton of great fundamentals — as much as there can be in crypto. Meme hype has cooled, but I really think PENGU will perform well once Bitcoin is in a healthier trend.”
Sherpa also disclosed that he holds a position in the token.
Crypto analyst Ali Martinez echoed the constructive outlook, noting that PENGU’s current chart structure resembles Pepe’s early technical setup before its sharp rally to all-time highs. Another trader, Awan, argued that PENGU’s appeal extends beyond short-term speculation, citing the strength of the Pudgy Penguins brand itself.
PENGU isn’t just hype, according to Awan. “It’s backed by Pudgy Penguins, a major Web3 IP with real-world execution.” He highlighted the token’s launch on Solana, its community-first airdrop model, and long-term team vesting as indicators of a more sustainable distribution strategy. Based on those factors, he said a $1 price target is “inevitable over time.”
From NFT Collection to Consumer Brand
Pudgy Penguins began in 2021 as a collection of 8,888 cartoon penguin NFTs launched on Ethereum during the height of the NFT boom. The project was originally created by four pseudonymous founders and quickly gained popularity for its distinctive art style and lighthearted, community-driven branding.
After internal disputes and stalled development led to a loss of momentum, entrepreneur Luca Schnetzler (Luca Netz) acquired the Pudgy Penguins IP in 2022 for approximately 750 ETH. Under Netz’s leadership, the project pivoted away from being purely an NFT collection and toward building a broader consumer brand rooted in Web3 culture.
That shift proved pivotal. Pudgy Penguins expanded into physical merchandise, licensing, and mainstream retail, including plush toys sold through major outlets such as Walmart and Amazon. The brand positioned itself as a bridge between crypto-native communities and mass-market audiences, emphasizing family-friendly design and accessibility.
Gaming Push Signals Broader Ambitions
Most recently, Pudgy Penguins announced the expansion of its Pudgy Party mobile game, marking a deeper push into gaming as a growth channel. The game has already surpassed 1 million players, won multiple industry awards, and is rolling out new seasons on a monthly basis, signaling growing user engagement and long-term development plans.
For supporters of PENGU, the combination of an established brand, real-world execution, and an expanding product ecosystem differentiates it from more ephemeral meme tokens. While broader market conditions and Bitcoin’s trajectory remain key variables, traders betting on PENGU argue that Pudgy Penguins’ evolution from an NFT project into a consumer-facing Web3 brand could give the token staying power in the next market cycle.
