PENGU Coin Faces Heavy Sell-Off After 870% Surge, Price Drops 54%

The Pudgy Penguins’ PENGU coin is facing significant selling pressure as investors are selling massive tokens after the bullish run.

Market data shows that more than $8.74 million worth of PENGU coin has been sold after the launch. This has resulted in the token’s price decreasing by 54% in the last 24 hours.

Despite the sell-offs, $PENGU maintains strong interest, having earlier surged 870% to a peak price of $0.05. It reached a  market cap of almost $3 billion.

Early Sell-Offs Pressure $PENGU Token Price

The PENGU coin launched on the Solana blockchain as part of the Pudgy Penguins NFT ecosystem. A key wallet, identified as HoTdB…YL8YZ, received 888 million tokens before the airdrop claim event. This wallet swiftly sold 169 million tokens at a price of $0.05164 each but still holds 719 million tokens, valued at around $40.14 million.

The wallet’s activity continued, with 176 million tokens worth approximately $9.3 million sold shortly after. This aggressive selling leads to approximately 20% of the wallet’s total holdings and increases concerns regarding price stability. Currently, market value of $PENGU has been reduced $0.03388 after fluctuating, thereby raising concerns on whether is was going to continue with the bearish move.

Despite these sell-offs, the wallet still holds a substantial amount of $PENGU, worth $37.7 million, fueling speculation of further selling activity. The ongoing pressure highlights the risk posed by large token holders and their impact on new projects’ price stability.

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PENGU Launch Achieves Milestones Despite Market Concerns

The PENGU coin was launched and had a massive spike of 870% within the initial 24 hours. The token surged as high as $0.05 with a trading volume of up to $ 90 million within an hour, illustration of much demand. Crypto exchanges like Binance, OKX, Bybit, and other leading exchanges immediately listed the token into their trading platforms boosting its adoption and liquidity.

To support the launch, Binance also provided up to 75x leverage on Binance Futures and a HODLer airdrop program. This initiative involved issuance of tokens to persons holding BNB involved in the Simple Earn program within the stipulated qualifying period. Early access to these tokens before trading opened significantly increased market liquidity.

The Pudgy Penguins team announced an 88-day claim period for eligible holders of Pudgy Penguins NFTs, Lil Pudgys, Rogs, and Pudgy Toys. To participate, users had to connect their Ethereum and Solana wallets and have at least $10 in SOL for gas fees. Remaining tokens after the said period will be burned, adding the token’s scarcity and, thus, its possible future valuation.

Trader Profits and Market Speculation on PENGU coin

The launch also drew the attention of speculative traders, including one anonymous trader who made $8.36 million in the first few hours after the token was released.

Based on Lookonchain data, this bot trader bought 239.6 million PENGU coin for 23,742 SOL ($5.36 million). 20 minutes later they sold the tokens for 60,726 SOL ($13.72 million), netting a profit of 36,984 SOL.

Amid the frenzy, interest in Pudgy Penguins merchandise has increased, with reports suggesting that $20,000 spent on plushies and collectibles could yield $50,000 via connected redeemable NFTs. This unique integration with real-world items adds value to the broader Pudgy Penguins ecosystem, blending physical and digital ownership.

Future Outlook for $PENGU Coin Amid Sell-Off Concerns

While $PENGU has experienced heavy sell-offs, the project remains significant in the NFT and crypto space. The token’s launch on Solana and integration with Ethereum Layer-2 chains reflect efforts to enhance interoperability and adoption.

Despite the current price dip, the team’s plans for future development and token burns could restore stability. The strong initial demand and major exchange listings suggest that $PENGU still holds long-term growth potential. Investors are advised to monitor the token’s price movements closely, as continued sell-offs by large holders could impact short-term performance.