Thoughts on $PENGU⬇️
First, three points I'm more Bullish on:
1. Pudgy Penguins has survived after experiencing team changes and FUD, and is doing well. The key is the team's strong self-healing ability - by selling toys and other operations to monetize the Penguin IP, ensuring the long-term operation of the project, such as launching the metaverse and issuing tokens, which are the results of their operations.
2. $PENGU valuation
We can now treat $PENGU as a memecoin - a meme of an NFT IP, something like that. Many people also treat $PENGU as a meme, comparing it to projects like $DOGE, $MEME, $SHIB. But considering its upcoming Abstract L2, perhaps we should treat it as a Layer2 Ticker.
Abstract is built on the ZK Stack framework of ZKSync, and the mainnet is expected to launch in January 2025. The highlight of Abstract is Native Account Abstraction, which allows users to create and use wallets with social information like email.
Another point is that Abstract will distribute the revenue of the on-chain sequencer to token holders who actively participate in governance, and the token most likely to participate in governance and dividends is $PENGU. Participating governance token holders will have the right to direct the future token emissions to a specific ecosystem project.
Some projects have already confirmed that they will deploy on the Abstract mainnet after launch.
It's worth mentioning that the Penguin team will use LayerZero to achieve the circulation of $PENGU between the Abstract and Solana ecosystems.
However, considering the early cold start and subsequent development, Abstract should also have its own token in the future. $PENGU is very likely to become the medium for users to obtain the Abstract token, such as staking to accumulate points, similar to Blur - Blast. In the early stage, Abstract will be governed through $PENGU, and in the later stage, the Abstract token and $PENGU holders will govern together.
3. Most of the airdrop recipients have already sold their positions. The general process is: wash trading, accumulating positions, and then dumping.
Now, let's talk about two more Bearish points⬇️
Currently, the overall market sentiment is not good, and as we enter the Christmas-New Year season, the overall market is quite weak. This is not a good time to buy coins. However, this kind of time usually gives us a bottom.
In the future, when the Abstract mainnet launches, Pudgy Toys players will receive $PENGU airdrops, which will create some selling pressure. I don't think the impact will be very large.
If you want to buy $PENGU, it's best to wait for the market to stabilize and $PENGU to trade sideways. The expectation is the potential linkage between Abstract and $PENGU. If there is no linkage, for short-term holders, selling is a better choice; for long-term holders, they can only hope for the future performance of Abstract.
DYOR
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