The improbable resurgence of the Pudgy Penguins Ethereum NFT project, once marred by a chaotic co-founder departure and split NFT token effort, has inspired investors to pump $9 million in seed funding into the venture. Early-stage investment firm 1kx and several other backers participated in the round, lending support for the project’s future aspirations.
Pudgy Penguins initially enjoyed a meteoric rise in 2021, fueled by viral media attention, including a feature in The New York Times. However, turbulent community drama and revelations about a co-founder’s past brought the project to its knees by early 2022. The aftermath saw prices plummet, and some holders decided to “wrap” their Penguin tokens.
Despite the turmoil, serial entrepreneur Luca Netz saw potential in the beleaguered project and acquired its IP for $2.5 million in April 2022. Netz acknowledged the absence of a substantial cash reserve but recognized that Pudgy Penguins needed a guiding hand to revive its fortunes. Unfortunately, Netz’s purchase coincided with a broader slump in NFT sales, which reduced creator royalties and dampened enthusiasm in the sector.
Remarkably, amidst these challenges, Pudgy Penguins has demonstrated resilience by defying the overall NFT market trends. Evading the fate of other fading projects like Bored Ape Yacht Club, which has seen its starting price fall dramatically, Pudgy Penguins’ value more than doubled during the same timeframe.
Capitalizing on this success, the Pudgy Penguins team expanded into physical merchandise and welcomed board advisors from Meta and Hasbro. Exposure grew, resulting in a partnership with talent agency WME for media projects and a $250 million spin-off in total trading volume. The project now enjoys a loyal fan base in the NFT community.
Netz firmly believes he understands what users want from the Pudgy Penguins project, as his initial venture into the NFT world started by purchasing a Pudgy Penguin himself. The project’s family-friendly and inclusive nature, coupled with a dedicated fan base, proved enticing for Netz.
Having positioned itself for broader influence, Pudgy Penguins has recorded billions of views on its official GIFs and millions of Instagram views, making it an appealing target for the seed funds and newfound deal with WME. Netz likens the Pudgy Penguin’s trajectory to that of an influencer, transcending its origins in search of ever-greater heights.
Source: Decrypt
