PENGU's Expectations and Future
TechFlow Selected TechFlow Selected
PENGU's Expectations and Future
Thoughts on PENGU.
Navigating Web3 tides with focused insightsBy Yu Zhong Kuangshui
First, here are three reasons why I’m relatively bullish:
1. Pudgy Penguins survived a team change and subsequent FUD against the new team—and not only survived, but thrived. The key was the team’s strong self-sustaining capability: monetizing the penguin IP through toy sales and similar initiatives (and those toys sold really well), ensuring long-term project operations. Initiatives like launching a metaverse or issuing a token are outcomes of that operational strength.
Remember, after Blur captured user mindshare, many NFT projects declined due to “loss of royalty income,” sparking heated debates. Money enables action; without it, progress stalls. Even the Ethereum Foundation sells $ETH to fund its work (tongue-in-cheek), shameless Ethereum Foundation.
The team is core to a project’s sustained growth and expansion. The new Pudgy Penguins team has proven itself—through self-sustainability and creating new market expectations (i.e., painting a bigger vision).
2. $PENGU Valuation
Right now, we can fully treat $PENGU as a memecoin—an NFT IP meme, essentially. Many people already view $PENGU this way, comparing it directly to projects like $DOGE, $MEME, and $SHIB. But given the upcoming launch of Abstract L2, perhaps we should start viewing it more as a Layer 2 ticker.
Abstract is built on ZKSync’s ZK Stack framework, with mainnet launch expected in January 2025. Its standout feature is Native Account Abstraction—meaning users can create and use wallets via social identifiers like email addresses. The Pudgy team aims to position Abstract as a consumer applications chain (longtime readers know I’m very bullish on this concept).
Another key point: Abstract plans to distribute sequencer revenue on-chain to token holders who actively participate in governance. That governance and dividend token will most likely be $PENGU. Participating holders will also have the power to direct future token emissions toward specific ecosystem projects.
Several projects have already confirmed they’ll deploy on Abstract at mainnet launch.
Notably, the Pudgy team will use LayerZero to enable $PENGU transfers between the Abstract and Solana ecosystems.
However, considering cold-start challenges and future development, Abstract will likely issue its own native token down the line. $PENGU could become the medium through which users earn Abstract tokens—say, by staking to accumulate points, similar to the Blur-Blast model. Early governance may be conducted via $PENGU, while later stages could involve joint governance by both Abstract’s token and $PENGU holders. (I haven’t found definitive details on an Abstract token yet—if you know of any sources or believe I’ve misunderstood, please share and correct me.)
BTW, their funding backers are solid too.
3. Most airdrop recipients have already sold their tokens. The typical cycle goes: wash, accumulate, pump, dump.
Now, two bearish considerations ⬇️
Current: The overall market is weak. As we enter the Christmas–New Year season, broader market conditions remain sluggish—not an ideal time to buy crypto. That said, periods like this often present us with a bottom.
Future: When Abstract launches, Pudgy Toys owners will receive $PENGU airdrops, potentially introducing new selling pressure. I don’t think the impact will be significant.
If you’re interested in buying $PENGU, it’s best to wait for market stabilization plus a flat price action in $PENGU. The main expectation lies in potential synergy between Abstract and $PENGU. If no such synergy materializes, short-term holders should consider selling; long-term holders will have to hope Abstract delivers in the future.
DYOR
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
雨中狂睡Sleeping in the Rain
