Pudgy penguins, a well-known brand, have been acquired by a major international toy company and are expected to bring about a big boom in trading volume and merchandise sales. However, there are some underlying issues that are affecting the company, including its founders’ run-off of the funds that they had invested in the toy line.
Founders run off with funds
The Pudgy Penguins team has had a rough go of it in recent weeks. After months of hype and promise, the project founders and executives had reportedly failed to deliver on a number of promises.
Rather than abandoning the project, the team allegedly transferred the funds into their own accounts. Ultimately, the treasury was empty.
Pudgy Penguins was not the first NFT project to fall apart. There have been many projects with a promising start but a rocky road ahead.
The Pudgy Penguins team was recently put under scrutiny after their tweets were shared widely on Twitter. As a result, several people working with the team have called them out. One of these individuals is ColeThereum, a Twitter user with over 100K followers.
The Pudgy Penguins crew supposedly had a plan for a community wallet, which would take in royalties from secondary sales and funnel them to the community. They also promised to do something that was bigger than a hat, glasses, or color scheme. However, nothing of the kind was actually built.
Among the Pudgy Penguins founders, ColeThereum is getting the brunt of the criticism. He’s been outed for siphoning funds from the project’s treasury.
ColeThereum has had some other trouble, however. In January of 2022, he was put under a barrage of negative tweets. His reputation took a hit, and his tweets were seen as a blatant scam. At this point, he’s been outed for being a shill on multiple projects.
This isn’t the first time ColeThereum has been dragged on NFT Twitter for being too obvious. He’s been accused of running paid promotions for several other NFT projects, including Pudgy Penguins.
Pudgy Penguins has been the subject of several buyout offers. At the time of writing, Luca Netz was in line to become the head of the project. Other buyout offers include 750 ETH and 2.3 million ETH.
The Pudgy Penguins treasury has been depleted. But there’s another way to turn things around. The community has come up with an alternative plan.
A community-inspired DAO has been set up to prevent founders from taking money from the community.
Toys are meant for holder’s IP rights
Pudgy Penguins NFT project has reacted positively to news of physical toys and licensing. The company has partnered with PMI Toys, a children’s toy company. They will develop toys and a line of plushies based on Pudgy Penguins IP.
In addition to the new partnership, Pudgy Penguins recently activated their Meme Maker. This is a digital platform that allows users to create and share original penguin-related content. It will allow them to monetize their content.
Pudgy Penguins has been the subject of a number of scams and hacks. However, the collection is now being led by a new team. While the team’s performance has been less than ideal, they are working hard to secure distribution and contracts with retailers.
As the company grows, it is focusing on its family-friendly IP. Currently, 15 penguins have been licensed to become physical toys. These include the Pengu Princess, a female penguin that celebrates Web3 female empowerment.
The brand is also working with the National Film Foundation (NFF). This agreement will allow the two companies to develop short-form media offerings for young viewers. Ultimately, the goal is to deliver IP that the community will be proud to own.
The team behind the Pudgy Penguins project is a diverse group of individuals. Some are from the digital world, while others have experience with the brick and mortar toy market. There are nine members on the advisory board. Each has a different role. One, for example, was the head of licensing at Hasbro. Another is the CEO of Nansen.
The Pudgy Penguins project is now led by Luca Netz. He is a Los Angeles-based entrepreneur who has been an avid NFT collector. When he decided to buy the Penguins project, he saw great potential.
Luca bought the IP rights for the collection for $2.5 million. His company, Luca Netz, purchased royalties from four of the original founders. Luca is now the new CEO of the company.
The company’s team has also re-entered the space with a new product, Lil Pudgys. The company plans to launch Lil Pudgys in December 2021.
Rise in trading volume since acquisition
Pudgy Penguins, an Ethereum-based non-fungible token (NFT) collection, is experiencing a surge in trading volume. In the past two days, Pudgy Penguins’ transaction volume has increased by nearly $18 million, putting it above CryptoPunks (also an ETH-based NFT) and Bored Ape Yacht Club (BAYC).
The project’s original run of penguins, numbered 300, sold out within weeks. After the sale, the project launched an NFT marketplace. It promised multiple items for holder, such as a soulbound token, toy line, clothing, and media hub.
Pudgy Penguins had a strong social media presence, and a slew of celebrities invested in the project. They included NBA star Steph Curry, Canadian rapper Tory Lanez, and Hasbro’s head of licensing Jess Richardson.
In April 2022, Pudgy Penguins was acquired by a team led by former German footballer Luca Netz. Originally, the group purchased the IP for 750 ETH. A few months later, they announced plans to turn the NFTs into collectibles. This was followed by a botched airdrop on Christmas Day.
Pudgy Penguins was also in the spotlight in the mainstream media. The New York Times featured the collection on its front page. While the story did not catapult the market, it did get people excited about the craze and the potential for these types of toys.
Meanwhile, the Pudgy Penguins community got together to debate forking the project. Some members of the community are calling it “the huddle”.
The Pudgy Penguins team, meanwhile, began to dwindle down their treasury to Coinbase accounts. Several offers to purchase the project came in, including a proposal by Zack Burks, founder of Mintable. His offer came in the form of 750 ETH and a DAO. However, 9x9x9, the owner of hundreds of penguins, rejected the offer, citing terms that Studio 309 proposed.
Although the Pudgy Penguins’ floor price has remained high, its value has been increasing over time. Currently, Pudgy Penguins are selling for $7000 on OpenSea.
In addition, the company is working on short-form media offerings for younger viewers. If the Pudgy Penguins are successful in their venture, it could change the way traditional gaming companies operate.
Merchandise to be available in two seasons
Pudgy Penguins merchandise will be available in two seasons, and that’s a lot of penguins. That’s because the Pudgy Penguin NFT collection is one of the most popular NFT projects out there.
Since its launch on July 22, 2021, the Pudgy Penguin collection has minted more than $117 million in sales. The merchandise includes clothing, hats, and accessories.
One of the biggest things that the Pudgy Penguins project has going for it is its ability to attract a very loyal and socially engaged collector base. Its unique IP appeals to people of all ages.
A lot of people who own Pudgy Penguins have a connection to the NFT community. Many of them have hung out on Twitter, Telegram, and Discord. This allows them to interact and form friendships with other holders of the Pudgy Penguins.
The community has also expressed concern about the leadership of the Pudgy Penguins project. When the ownership of the project changed in January, many of the prominent members of the community voiced their concerns about the new leadership.
However, after some changes, Pudgy Penguins are back on track. The Pudgy Penguins team recently announced the creation of a nine-member advisory board. They include Saks Fifth Avenue COO RJ Cilley, Hasbro’s head of licensing Jes Richardson, and Nansen CEO Alex Svanevik.
The advisory board’s goal is to help the Pudgy Penguins team create a successful project. They plan to produce a series of short-form media offerings for younger viewers.
In addition, the Pudgy Penguins team has also partnered with the Green Kids Club to publish a children’s book series. These efforts are expected to bring in some funding for penguin conservation programs.
While the company is still focusing on branding, the team has some exciting plans for the future of the Pudgy Penguins NFT collection. The team has a roadmap that outlines how the merchandise will be distributed over two seasons.
Pudgy Penguins will remain a top NFT project in the years to come. However, it’s important to note that the project has suffered from a lot of reputation damage, and some prominent users have questioned the leadership of the project.