TL;DR: With a new update or NFT collection being released almost every day, it’s clear the crypto ecosystem is constantly evolving. Pudgy Penguins is one of the NFT collections paving the road to the digital universe — but it’s just the beginning. Knowing what brought it here and why it was created will lead you to make better decisions when investing or simply interacting with Pudgy Penguins.

In this article, we’re gonna dive into the Pudgy Penguins lore, answer all the Pudgy Penguins related questions and even more. Prepare yourself for a fantasy story and a journey to the future of Pudgy Penguins!

What is Pudgy Penguins?

Pudgy Penguins is an NFT collection of 8,888 adorable penguins that live on the Ethereum blockchain.

Like many NFT collections that emerged during the 2021 NFT frenzy, Pudgy Penguins started out as a bunch of profile pictures. These chubby and flightless Antarctic creatures exist solely for the purpose of making you smile – there is no lore behind the collection.

Pudgy Penguins are regarded as a blue-chip NFT for passionate collectors.

Owning an NFT is different than screenshotting a JPEG - just like holding an original Rembrandt is more valuable than owning a replica. As their name suggests, NFTs are non-fungible by design. This is different from digital tokens like Bitcoin and Ethereum.

Fungible assets can be exchanged for another asset of the same type, much like BTC, ETH, or even fiat. NFTs, on the other hand, are unique assets where their ownership details are documented on the blockchain, ensuring digital scarcity and unique attributes for each asset.

But how exactly is digital scarcity being enforced?

The concept of NFTs first emerged in 2012 with the creation of Colored Coins, which could be used to represent real-world assets on the blockchain. However, Colored Coins only worked in a permitted environment, making it more similar to a database than anything else.

As the crypto industry became more popular, people have continued to experiment with the idea of a digitally scarce asset. This led to the creation of ERC-721 and ERC-1155.

The ERC-721 standard is like a set of rules for making NFTs. These actions help in making special tokens with their unique information, making them different from one another.

Behind the scenes, ERC-721 smart contracts keep a list of who owns which token, making it safe to pass tokens from one person to another. The contract also keeps count of how many tokens there are altogether and how many each person has.

As previously mentioned, Pudgy Penguins NFTs are secured by the Ethereum blockchain. Ownership and transaction history are publicly visible on the Ethereum blockchain along with other important info such as the NFT's metadata.

Understanding how to access an NFT's metadata is essential for holders to grasp the specifics of what they're buying.

Metadata usually includes visual attributes like color, type, wearables, and so on. On the blockchain, it looks something like this:

Pudgy Penguins have their own set of traits that make up their uniqueness. These are the background, body, face, head, and skin.

Some traits are rarer than others, which makes a specific NFT stand out from the rest. For example, only 4 Navy Blue skinned penguins exist.

Rarity is represented by the mix of traits possessed by the penguin – the rarer the traits, the more expensive.

The Pudgy Penguins NFT collection has been autogenerated. This means that out of the potential combinations, only 8,888 Pudgy Penguins will ever exist!

In addition to the OG collection, there’s an extension called Lil Pudgys. They are 8,888 NFTs that make a cute and affordable entry into the Pudgy Penguins ecosystem.

At large, Lil Pudgys enjoy the same perks as the Pudgy Penguins. Both have access to experiences, events, IP licensing opportunities and more. Pudgy Penguins may be assigned more spots than Lil Pudgys when a particular opportunity is limited in quantity. On the other hand, some initiatives could be exclusive to Lil Pudgys.

What is the utility of Pudgy Penguins?

Pudgy Penguins make for an awesome avatar pic, but it’s also your ticket to the Pudgy ecosystem.

The Pudgy ecosystem is akin to a huddle, where NFT holders get to spend time together and come up with new ways of promoting the artwork. And let me tell you, this huddle is global. Pudgy Penguins has organized meetups all over the world and they continue to host events both online and IRL.

Huddle Activities are hosted every week on their website. Activities are linked to members’ hobbies, which are then shared with the entire Huddle. To mention a few, Twitter contests, free yoga sessions, video editing classes, voice chats, poker tournaments, and so on.

Because Pudgy Penguins is one of the largest NFT IP brands, holders get a share of the revenue. To give more info, if their NFT is featured as a toy and is sold, holders make money from royalties.

Pudgy owners are set to receive royalties at a rate between 10-15% of net sales. For instance, considering an 800k Pudgy Penguins order from Walmart at an estimated $8 retail price, assuming a 15% net rate, Pudgy is expected to earn around $960,000. In short, owning a Pudgy gives you access to a source of revenue that has the potential to expand in the following years.

As the Pudgy Penguins brand expands, NFT holders will be able to continually earn rewards. Whether you are hodling for a season or longer, the Pudgy Penguins ecosystem continues to explore new ways of keeping holders engaged.

Who created Pudgy Penguins?

Pudgy Penguins was created by a group of college students in 2021. Most events revolve around ColeTherium, the co-founder of Pudgy Penguins, and his relationship with the community.

When the project first made its grand entrance in July 2021, it sparked an intense buzz in the crypto community. Maybe it was the irresistible charm of the penguins or the surging excitement in the NFT market – whatever it was, the Pudgy Penguins collection sold out within a mere 19 minutes. These quirky penguins became an instant sensation, with some of the rarer pieces snagging eye-popping bids, reaching as high as $463,000. Not to mention, early adopters included big names like NBA All-Star Stephen Curry and Canadian rapper Tory Lanez.

The project quickly grouped into a lively NFT community, or as they like to call themselves, “The Huddle.”. Excitement soared as the team laid out an impressive roadmap featuring plans for a token launch, a series of children's books, and even the creation of their very own metaverse.

The community flourished, and for a while, it was considered one of the leading lights in the industry. With every NFT’s value on the rise, a Pudgy Penguin #6873 even fetched a staggering 225 ETH, worth close to $1 million at the time.

But then came a bit of a twist in the story. There were murmurs about ColeTherium, one of the project’s founders, having a murky history involving fraudulent activities. A vocal community member, 9x9x9.eth, holding 200 Penguins and being a prominent figure in “The Huddle,” raised concerns about the founder’s treatment of community members.

In a string of tweets, the founder’s intentions to abandon the project and the offer of selling the IP rights for 888 ETH were revealed.

It’s safe to say that the original team behind Pudgy Penguins failed to meet the high expectations set during the initial hype. They made various disappointing decisions, including delaying the reveal of an airdropped egg for four months, creating an overpriced merch line with minimal discounts, and presenting an unimpressive and delayed roadmap.

The unfulfilled promises of a fishing game, educational books, and other commitments left a palpable sense of letdown. This disappointment led to rumblings within the Web3 community, with some likening the project's trajectory to a "rugpull". The subsequent release of a second collection, despite a clear lack of demand, only contributed to the erosion of trust and enthusiasm among the community. The team’s dedication to the Pudgy Penguins brand came under scrutiny, especially as some team members seemed more engrossed in personal NFT trades and advising other ventures.

The tense atmosphere was further intensified by internal disagreements and perceptions of mistreatment among team members, adding an extra layer of strain to an already faltering relationship with the community.

The situation took a turn for the worse when it was discovered that the founders had drained the project's treasury. As this shocking revelation spread across social media, the community's concerns escalated. Members took a stand against the original founding team, rallying for change and a new sense of accountability.

The community ousted its creators in March over claims of unmet promises and the depletion of the project's financial reserves. Immediately after, a faction is advocated for complete decentralization, a potential first in the industry.

In the aftermath of these events, the value of a Pudgy Penguin surged significantly. One day before, its floor price stood at roughly 0.6 ETH ($1,860), which escalated to 1.7 ETH ($5,270) after the vote.

Despite the ousting of its founder, he and his team would still receive royalties for as long as the project existed. There were even talks about migrating the NFTs to a Wrapped Penguins collection.

The fate of Pudgy Penguins seemed sealed – it appeared like the collection couldn't be revived. But against all odds, the story took a stunning turn.

Enter Luca Schnetzler: a name that breathed new life into the seemingly dwindling world of the Pudgy Penguins. Acquiring control and management rights over the collection for 750 ETH in April 2022, valued at around $2.5 million at the time, Luca became the driving force behind this unexpected twist of fate.

Luca currently serves as the CEO of Pudgy Penguins. At 18, he initiated his first direct-to-consumer business, which generated approximately five million dollars in revenue during the first year and soared to $15 million in the following year. Achieving self-made millionaire status at 19 was a significant milestone in his journey, marking the fruits of his early success.

Transitioning from selling physical products, his foray into the world of NFTs and cryptocurrencies didn't occur randomly. He has been involved in the crypto realm since around 2016, emphasizing his belief in the fundamental right of individuals to transact without intermediaries. Having ventured into mining early on, his background of growing up with financial limitations prompted him to collect physical items like bear bricks, collectables, and fine art when he finally had the means to do so.

For him, NFTs represented a compelling evolution of collecting, offering all the advantages with none of the drawbacks. It fulfilled his passion for collecting and inspired a seamless transition into the realm of NFTs and the limitless potential they presented.

While Pudgy Penguins were the first PFP NFT purchased by Luca, his attachment to the community behind it was unwavering. Despite the challenges the collection faced, Luca saw a glimmer of hope and potential in the brand and seized the opportunity.

What followed next is perhaps the best comeback story in the NFT space. As soon as Luca took charge, the Pudgy Penguins community experienced a rejuvenation. Former members returned, and new enthusiasts joined the flock. Notable figures in the crypto world, such as Alex Svanevik (CEO @Nansen), Pentoshi, and Crypto Kaleo, reinstated their trust in the project.

Under Luca Schnetzler's leadership, the team conducted an AMA on March 10, 2022. The focus wasn’t just about the deal but more about sharing their aspirations and ongoing efforts. About a month later, an exclusive yacht party was held at the F1 race in Miami for Penguin holders, marking the beginning of the collection's resurgence. On April 21, the team unveiled an updated roadmap outlining their objectives and ambitions for the Penguins.

Pudgy Penguins staged an impressive comeback. The floor price began to climb, and the Penguins made a visible reemergence in the rankings of NFT marketplaces. Clearly, development surrounding the project's brand has regained momentum. For instance, Luca Netz showcased a sneak peek of the first version of Pudgy Toys, soon to hit the shelves, on Twitter.

Who is developing Pudgy Penguins now?

Pudgy Penguins is being maintained by Luca Schnetzler and his team. Their goal is to advance the intellectual property of Pudgy Penguins.

The Pudgy Penguins website lists 6 core members.

Lorenzo Menendes serves as the President of Pudgy Penguins. He previously worked as a full-stack engineer and founded Cowboy Labs, a Software-as-a-Service company for blockchain tools.

Austin Lee serves as the Head of Growth at Pudgy Penguins. He also serves as the Senior Community Moderator and Strategist at Metaverse HQ, a Web3 technology company focused on incubating startups.

Peter Lobanov serves as the Chief Creative Officer at Pudgy Penguins. He is also the founder of Bureaux, a creative design and technology studio specializing in full-service bespoke creative services like visual design, branding, motion design, and web development.

Jennifer McGlone takes care of the legal side, and Vedant serves as the Head of Strategy.

Since the new team took over, Pudgy Penguins experienced a radical revamp: a new website, the creation of the Pudgy Marketplace, stickers on social media, verified socials, brand new merch line. Everything was done with crisp professional execution.

The new leadership was quick to bring Antoine Mingo, the Artist behind Pudgy Penguins, onto the team full-time. The Penguins themselves played an integral part in Pudgy Penguin’s survival, and his return was crucial for the project moving forward.

Investors are also an important component of the Pudgy Penguins ecosystem. Although they don’t get involved directly in the governance of the project, they do exert an influence over the brand’s expansion into the mainstream. On May 19, 2023, Pudgy Penguins raised a $9 million seed funding round led by 1kx. The company plans to use the new capital to scale its intellectual property and team.

With so much professional involvement from the team, Pudgy Penguins has no plans for an on-chain governance structure. That being said, the community gets to brainstorm in Discord with the team. Furthermore, they have a dedicated community page where members can self-organize all sorts of initiatives. Every Pudgy holder can schedule events on the community calendar, collect badges, discover and join clans, and be featured on the map.

The community helps with organizing their own Pudgy-themed events and spreading awareness about the collection. This combination of strong leadership and tight community turns Pudgy Penguins into one of the most valuable IPs in the NFT space.

How does Pudgy Penguins make money?

Now, let’s get to the juicy part – how does Pudgy Penguins make money?💰 (No, flipping and rug pulling are not the correct answers)

The answer to this question is strongly related to intellectual property.

Think of popular trademarks such as Mickey Mouse, Spider-Man, or Coca-Cola. Every time you see movies, books merch, or posters with them, know that the owners of the IP get a share of the profits. The same thing goes with the NFT holders, in theory.

When it comes to NFTs, it’s quite challenging to fit them into the traditional framework of copyright law. To give more context, owning an NFT doesn’t mean holders have automatic control over the creative work. This creative control needs to be granted by the creator.

As such, NFT holders should pay attention to what IP rights, if any, come with owning the NFT.

The team behind Pudgy Penguins has authorized the use of the IP of any individual-owned Pudgys. This means NFT holders have full commercial rights to the art in their owned wallets, up to $500K. Any revenue above the threshold requires getting in contact with the team. For more info about the IP rights, check their website.

Another way of generating revenue is via royalties. Creators take 5% in royalty fees from each secondary sale.

The mission of Pudgy Penguins is to become a multi-billion brand in the NFT space and beyond. Since its 2021 launch, Pudgy Penguins has earned $400 million in sales. Unlike most collections, the brand has doubled down on social media and experiential marketing techniques to reach new audiences.

Following the acquisition, the team had a clear vision—to leave a lasting impact not only on their holders but also on the world, revealing the true essence of the Penguins. Their NFT NYC initiative was a two-fold endeavour, designed to resonate with both internal holders and collaborators, intertwining to bring the Pudgy experience to life.

In terms of collaboration, the team joined forces with Shopify and Kristopher Kites, culminating in an interactive event hosted at Shopify in New York. During the day, attendees had the chance to indulge in custom Pudgy Popsicles by Kristopher Kites, some of which contained golden tickets to win a unique 1/1 chain. This collaboration was a significant step towards bridging the gap between Web2 and Web3, and the team expressed gratitude to Shopify for hosting this remarkable event.

On the community front, a private, holders-only gathering took place at SPIN 23, an iconic social club situated in the heart of the Flatiron District of New York. The event included 20 ping pong tables, various mini-games like beer pong and Jenga, delightful food and drinks, and the popular blue ROGaritas. The atmosphere was a testament to the Huddle's unity, spreading a sense of inclusivity, affection, and positivity among attendees. Such exclusive events reinforced the bonds within the community, making connections deeper and fostering a sense of togetherness. The NFT NYC party stood out as one of those memorable occasions

In the pursuit of enhancing the adoption of Web3, the team recognized that they had to make onboarding easier. So they partnered with Origin for the launch of the official Pudgy Penguins Marketplace. This dedicated space serves as a convenient hub, allowing users to seamlessly engage with all available collections in one centralized location.

The Pudgy Penguins brand has ventured into another significant realm: clothing. To achieve mainstream appeal, the launched an inaugural clothing line comprised of eight unique pieces, ranging from hoodies to long sleeves to t-shirts.

The Pudgy Penguins brand partnered with PMI Toys to bring the captivating world of Pudgy Penguins to life. Utilizing Penguins from dedicated holders, they aim to feature these beloved characters in a toy line.

The collaboration offers licensing opportunities, allowing select Penguins to become tangible, not just on the shelves of physical stores but also in the digital marketplace. This advancement opens up boundless possibilities for project holders, enabling the use of their IP in real-world applications.

The plush collection is inspired by the original NFT collection, comprising sixteen distinctive plushies, each corresponding to an existing NFT on the blockchain. Additionally, each plushy is embedded with a QR code that unlocks a series of NFTs. The release generated nearly $500,000 in sales within forty-eight hours, indicating immediate success. Moreover, the launch of Pudgy World alongside Pudgy Toys brings a user-friendly online platform, providing non-Web3 consumers access to blockchain wallets, alongside soulbound and tradable NFTs. This monumental venture showcases the evolving potential of NFTs and their integration into various spheres beyond the digital space.

One of the more interesting ideas to make Pudgy Penguins popular was to turn them into GIFs.

The release of the official Pudgy Penguins GIF resonated strongly, leading to a remarkable rise in popularity, with the brand trending on GIPHY's homepage. The content surpasses 40,000,000 views, marking a substantial digital footprint.

Witnessing an upsurge in impressions on their GIPHY page, Pudgy Penguins ingeniously launched a platform on their website for users to submit their GIF ideas featuring their own Penguins. This move to empower and integrate community input aligns with the brand's ethos.

In September 2022, Pudgy Penguins made a significant move by embracing storytelling within the realm of Web3 branding. Prior to this, the narrative attached to NFT content was relatively lacking, and the brand sought to redefine this landscape. This approach was an exploration of the diverse forms and dimensions of storytelling. To kickstart this endeavor, a collaboration video with Nonfungiblefilms was released, marking the beginning of their foray into the storytelling domain.

Moreover, in a bid to fully comprehend the varied aspects of storytelling, the team announced their plans to cast community-held Penguins for the purpose of weaving tales across various formats. These tales could span from short animated series to children's books or other forms of continuous content. The central goal was to engage the community in a cohesive and immersive narrative experience for an extended period.

The brand's initiative in incorporating storytelling into their strategy made an immediate impact. They were prominently featured on the homepage of OpenSea under the segment dedicated to "Storytelling NFTs," validating their idea.

In November 2022,  Pudgy Penguins announced the successful conclusion of its special auction with Sotheby’s. At the auction, Cole's Penguin, a super popular Pudgy Penguin, sold for $128,898. It was a big deal because it wasn't just an NFT sale. Pudgy Penguins made a special certificate called a Soulbound Token (SBT) to prove it was real and sold it to Sotheby's, a big auction house.

A part of the money from the sale went to good causes. One part went to the Cozy Horizon Fund, which helps the Pudgy Penguins community, and the other part went to Oceanities, a group that helps the Antarctic.

The auction was a hit on social media, with lots of people showing off their support by using #beaksoutforsothebys. This boosted Pudgy Penguins a lot, making it more popular than ever.

In September 2023, Pudgy Toys became available in 2,000 Walmart stores across the United States after initially launching on Amazon and in various retailers globally. This major development marked a turning point for Pudgy Penguins, bringing their blockchain-powered products to a wider audience. The team sees this as a step closer to making their NFT IP a prominent part of the world's largest retail chain, introducing hundreds of millions of people to their brand.

The QR codes on each Pudgy Toy unlock digital traits in Pudgy World, featuring collaborations with other Web3 brands. Additionally, the Pre-Alpha launch of PudgyWorld allows users to explore a 3D interactive environment with fun mini-games, further expanding the Pudgy Penguins experience.

Where can I buy Pudgy Penguins?

You can buy Pudgy Penguins on OpenSea.