Market value doubles in one year, will Azuki be knocked off the horse How much longer can Pudgy Pengunis be popular?

Will Azuki be knocked off the horse as its market value doubles in one year? How much longer can Pudgy Pengunis remain popular?

Author: 0xmonomi

According to the data from @waleswoosh, since December last year, the market value of Pudgy Pengunis has been steadily increasing and has doubled so far. This year, it has been particularly impressive, surpassing industry leaders such as BAKC, Doodles, Clone X, and Meebits, and becoming a new star in market value. Coincidentally, Azuki, which is at the top of the list, has been in trouble due to the Azuki Elemetals incident, and its market value has continued to decline, undoubtedly providing an opportunity for Pudgy Pengunis to overtake.

While Azuki lost community consensus due to an unexpected incident, Pudgy Pengunis gained more mentions and attention by insisting on “doing IP solidly”. This undoubtedly tells us that the stability and authenticity of a brand are the key to gaining market and consumer recognition. For example, on May 19th, Pudgy Penguins launched physical dolls called “Pudgy Toys” and quickly became the best-selling product on Amazon, surpassing well-known brands such as Barbie, Lego, and Pokemon.

So why has Pudgy Pengunis achieved such tremendous growth in such a short period of time? What is the secret behind its success? We will explore them one by one in the following.

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Community members set traps and engage in wrongdoing, Pudgy Penguins almost fell apart

Pudgy Penguins did not have the smooth sailing like BAYC.

While Pudgy Pengunis’ market value continued to rise and its product sales reached new highs, a sudden storm broke out in early January 2022. 9x9x9 tweeted on social media, accusing Pudgy Penguins’ founding team of intentionally “running away with the funds”. He claimed that the founding team tried to sell the project to him at a low price of 888 ETH, but in reality, they sold him an “empty shell” and planned to leave with all the revenue.

As soon as this news came out, dissatisfaction with Pudgy Penguins’ founding team quickly accumulated in the community and a collective event broke out. Angry community members voted on Discord to “dismiss” the founder @ColeThereum. At the same time, the floor price of Pudgy Penguins dropped to a historical low of 0.519 ETH.

In such a crisis, Luca Netz eventually bought the project from the Pudgy Penguins founding team for 750 ETH and became the new CEO. His arrival brought new vitality and hope to this troubled project.

After taking Pudgy Penguins under his wing, Luca Netz quickly demonstrated his leadership and planning abilities. From the project’s brand positioning to future development plans, from recruiting the necessary talents to organizing community activities, he made comprehensive and clear arrangements. He not only became the “savior” in the hearts of community members, but also helped Pudgy Penguins stand up again and shine with new vitality and brilliance.

All of this development demonstrates Luca Netz’s leadership and strategic vision, and lays a solid foundation for the future development of Pudgy Penguins. Under his leadership, Pudgy Penguins is expected to continue its growth momentum and achieve greater market breakthroughs and brand value enhancement.

New boss takes multiple measures to revitalize Pudgy Penguins

From the moment Luca Netz took over Pudgy Penguins, the project gradually stabilized and began to explore new directions and strategies under his leadership. As a result, Luca has actively engaged in the development and planning of IP derivatives.

He not only handles the related affairs of IP authorization and product planning, but more importantly, he has established a deep emotional bond with users. To achieve this, Luca divides it into the following three points:

1. Skilled use of social media and excellent meme dissemination abilities

The popularity and activity of Pudgy Penguins on social media are evident. In addition to having over 100,000 followers on Twitter, the team has also invested a lot of effort and attention on web2 platforms.

Especially on Instagram, Pudgy Penguins has up to 360,000 followers. By constantly updating cute content of the little penguins, it has attracted a lot of attention and comments. Some of the released animations even received 400,000 likes. Such a high level of interaction makes it easy for Pudgy Penguins to establish close connections and emotional bonds with a large number of young users.

2. Quick and short content first, utilizing influence for authorization monetization

Luca expressed his deep agreement with a tweet that described “Pudgy Penguins” as the doge of the NFT world. He carefully considered this similarity, mainly manifested in meme orientation. His goal is to spread these memes widely. For example, he chose Giphy, a platform that has been integrated into many large web2 platforms, especially Twitter. Memes are everywhere, and the power of user-generated content can easily promote the IP to every corner of the Internet.

In his view, the main role of social media is as the uppermost layer of the conversion funnel, allowing more people to become familiar with and love the brand. For example, in the United States, among Giphy users, the highest proportion is between 18-29 years old, reaching 37%. If these young people, especially those in the web3 circle, receive a gif with the penguin image sent by friends and family, they will immediately recognize that this project is actively promoting.

Luca believes that this gif meme strategy is particularly appealing to this age group, as it can increase their positive perception of the project and potentially convert them into supporters and advocates of the penguins.

However, ultimately, social media primarily serves brand promotion rather than direct monetization channels. Currently, these exposure and interaction data, especially the active interactions of young people, are powerful bargaining chips for the team in negotiations with authorized merchants and content production studios. This is similar to the launch strategy of trendy IP in China, where initially, by creating cute characters and quick content, everyone develops a favorable impression of the brand and characters, rather than investing heavily in producing long-term content and relying on storytelling animated series to extend the longevity of the characters and achieve long-term monetization of the IP.

3. Sharing the Success and Commercial Value of Brands with NFT Holders

Luca firmly believes that web3 projects should fully leverage one of the unique advantages of NFTs – attracting the attention of 5,000 to 10,000 people and turning them into loyal supporters of the brand. In his preliminary research on top NFT projects, he found that Bored Ape Yacht Club (BAYC) has done an outstanding job. BAYC has successfully built the trust foundation of its community by rewarding early holders with substantial returns, which has led community members to become advocates and promoters of the project spontaneously. While 5,000 may not be a small number, if you have 5,000 influential promoters, building a billion-dollar business is not out of reach. People will support you because it is closely connected to their interests as NFT holders.

Therefore, in retrospect of the business development of Pudgy Penguins, regardless of what form the IP ultimately grows into – whether it’s a game, TV show, or physical toy – the key is to continuously give back the accumulated value of the business to NFTs, ensuring the continuous growth of the core community.

Conclusion: Efforts Needed for the Perfect Integration of NFTs and the Traditional Entertainment Industry

After exploring various IP operation and licensing models, Pudgy Penguins has successfully brought the narrative of NFTs into the web2 world. However, this transformation is not without controversy. Some question: Does Pudgy Penguins only exist as a toy?

In response to this question, Luca Netz gave his opinion in a media interview. He stated that Pudgy Penguins sees physical toys as the “Trojan horse” of the web3 ecosystem and NFTs. He believes that the revenue from NFTs is unsustainable and cannot truly grow. The purpose of launching physical toys is to make the company’s operations more sustainable. They hope to create intellectual property that goes beyond the current ecosystem through physical toys.

This strategy by Luca Netz demonstrates his deep understanding of how to achieve long-term development and growth for the brand and business through physical products. It not only brings more stable and sustainable income to Pudgy Penguins but also helps expand its market influence and brand recognition.

This strategy by Pudgy Penguins is a bold attempt and innovation that closely connects the virtual world with the real world, showcasing the infinite possibilities between NFTs and physical products. Through physical toys, Pudgy Penguins can attract a wider range of consumer groups and provide a new direction and perspective for NFT projects. The success or failure of this strategy will provide valuable experience and reference for other NFT projects and brands, and further promote the integration and interaction between NFTs and the physical world.

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