Pudgy Penguins recently burned over $150 million in unclaimed Solana tokens after ending its PENGU token claim earlier than expected.
Pudgy Penguins recently burned over $150 million in unclaimed Solana tokens after ending its PENGU token claim earlier than expected. Initially set to end on March 9, the claim period was cut short on Feb. 5 after Pudgy Penguins NFT owners had already claimed most of the tokens. Luca Netz, the project leader, explained that the decision to expedite the burn was driven by data showing that only bots were continuing to claim the tokens from the 8 million eligible wallets.
At the time of the claim's closure, around 13.69% of the total token supply remained unclaimed, which amounted to more than 12 billion PENGU tokens. These tokens were transferred to the “1nc1nerator” burn address, effectively removing them from circulation. Though token burns are generally seen as a way to reduce supply and potentially drive up prices, the value of PENGU dropped by almost 8% following the burn. It fell to $0.0117, below its price at the time of the burn.
This price dip comes despite Pudgy Penguins’ recent efforts to bring in new inflows. Igloo Inc., the company behind the Pudgy Penguins project, has been working to boost institutional interest and bring more attention to the ecosystem, which includes both the PENGU token and the Ethereum-based Pudgy Penguins NFTs. The NFTs themselves have also taken a hit, with the floor price dropping 11% over the past week to $29,860, according to NFT Price Floor data.
Despite these challenges, Pudgy Penguins remains focused on its long-term goals. The team has emphasized that they aim to increase the token’s appeal, both to individual and institutional investors. Whether these efforts will succeed remains to be seen, as the PENGU token continues to face volatility.
For now, the token is no longer in the top 100 cryptocurrencies by market cap, a position it had previously occupied. The fate of PENGU will likely depend on how Pudgy Penguins can attract new users and investors to the ecosystem, and if the current market conditions will support its recovery.
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