A written off project currently eclipsing Blue-Chip Nft collections

However, one project that has managed to buck the trend and record astonishing growth in 2022 is Pudgy Penguins. This collection of hand-drawn penguins has seen a three-digit increase in floor price in recent months.

This week, the project saw a further increase in trading volume and even surpassed the highest floor price of all time. This development is quite surprising for a project that was almost completely written off a few months ago.

But what are Pudgy Penguins and why are they rallying while most other NFTs are suffering the bitter crypto winter? Stay tuned as we tell you more about this project and its surprising rise from the ashes.

What is the Pudgy Penguin NFT Collection?

Launched in July 2021, Pudgy Penguins is an Ethereum-based NFT collection consisting of 8,888 hand-drawn penguins. The project came about at a time when animal-inspired profile picture (PFP) projects, such as the Bored Ape Yacht Club, had just become popular. Therefore, Pudgy Penguins became an instant hit, with all the NFTs selling out shortly after they were released.

However, community interest was strong and investors began to pursue the collection on the secondary market. In September 2021, one investor was even reported to have paid 225 ETH for a piece from the collection. At the time, 225 ETH was worth almost $1 million. However, the project was unable to sustain this momentum and began a steep downward spiral.

The Fall of the Pudgy Penguins

Towards 2021, the Pudgy Penguins were plagued by several internal controversies. For example, there were rumors that the project’s co-founders had siphoned funds from the Pudgy Penguin treasury. Furthermore, one of the co-founders, Cole Villemain, was also suspected of carrying out undisclosed paid promotions for the project.

However, the final nail in the coffin was when crypto influencer 9X9X9 announced that the Pudgy Penguins founders had offered to sell him the project for 888 ETH, an offer he rejected. The revelation sparked fears of a carpet sweep, and a massive sell-off ensued, causing the floor price of the collection to drop.

The astronomical rise

A couple of months later, the project was sold to Luca Schnetzler for just 750 ETH, worth about $2.5 million at the time. Schnetzler is a well-known entrepreneur with several growth stories under his belt. Also, he was also a fan of the Pudgy Penguin project and made it his mission to turn the collection around.

Shortly after taking the reins, Schnetzler introduced several initiatives to increase the value of the collection. Initially, he provided Pudgy Media, a hub for all things Pudgy. He also created the Pudgy Yacht Party in Miami with popular rap artist Tory Lanez. The project also introduced its range of toys and clothing. Shortly after, Pudgy Penguins also had their own marketplace and Soulbound token.

All these developments led to the collection’s floor price increasing by 400 percent between January and August 2022, peaking at 1ETH. This is at a time when most other projects recorded drops of 50 to 90 percent. Moreover, the project continued to gain momentum over the next few months.

Most recently, between December 22 and December 28, the project’s floor price rose another 50 percent, rising from 4.50 ETH to 6.90 ETH. On December 27th, four pieces from the collection sold well above this floor price, fetching 40 ETH, 33 ETH, 27 ETH and 25 ETH.

Conclusion

The past year and a half has been a rollercoaster ride for the Pudgy Penguins project and its investors. The pool went from the brink of collapse to being one of the best NFT pools in 2022, even eclipsing NFTs like BAYC. It shows that strong community support is enough to combat bear racing and FUD.

Moreover, it also proves that good leadership and vision can effect amazing turnarounds, regardless of the situation. These are lessons the rest of the crypto market can use right now.