Profit-taking selling pressure is out! PENGU token has plummeted 55% since its launch
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Profit-taking selling pressure is out! PENGU token has plummeted 55% since its launchThe t... Profit-taking selling pressure is out! PENGU token has plummeted 55% since its launch
The token PENGU, launched by the popular NFT project Pudgy Penguins, officially debuted last night (December 17th) along with an airdrop. However, shortly after its release, heavy sell-off pressure emerged as investors took profits, causing PENGU's price to plummet dramatically—dropping by 55% so far.
Heavy Selling Pressure on PENGU's Launch Day
According to CoinGecko data, PENGU's trading volume surged to $474 million within just an hour of its launch. Yet, the token's price tumbled from an opening price of $0.068 to $0.0308 at the time of writing. The market capitalization also shrank significantly, falling from $4.32 billion to $1.93 billion.
Blockchain analytics platform Nansen attributes the price drop primarily to large-scale selling by airdrop recipients, who flooded the market with sell orders. This oversupply caused the price to sink rapidly.
NFT Floor Prices Decline in Tandem
Before PENGU's token launch, the floor price of Pudgy Penguins NFTs had soared to 34.8 ETH, surpassing $100,000 and setting a new all-time high.
However, as PENGU’s token price nosedived, the floor price of Pudgy Penguins NFTs followed suit, dropping by a staggering 50.3% in the past 24 hours to 16.4 ETH.
Some Traders Cash In on Market Volatility
Despite the downturn, certain traders managed to capitalize on the market's volatility for significant profits. According to LookonChain, one trader purchased PENGU tokens for $5.36 million and sold them for $13.72 million just 20 minutes later, netting an astounding $8.36 million in profit.
Outlook: Continued Downward Pressure
Such opportunities for massive short-term gains may be harder to replicate moving forward. With another exchange, OKX, announcing plans to list PENGU, market supply pressure could intensify further, keeping the token's price under downward pressure.