DeutschPudgy Penguins have generated massive profits over the past few weeks. The NFT collection has been extremely successful for months and is now one of the largest projects of its kind. Why the digital penguins are so highly sought after, how they enable users to generate passive income, and what innovations are still to come.
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Pudgy Penguins: why the NFTs are Generating Such Strong Profits
Pudgy Penguins is the name of a popular NFT collection on Ethereum. While many similar art collections are steadily losing importance, the little penguins are celebrating remarkable successes.
The developers of The Igloo Company are relying on a new strategy for this. Short films and cute images are intended to reach users where they already are: on social networks.
On Instagram, the Pudgy Penguins now have over 1.1 million followers. On YouTube, the short films are usually viewed by a five-figure audience. The main role in the media presentation is of course played by the penguins themselves, who have been given the cutest possible appearance.
The penguins can either be seen in animated everyday situations that seem familiar to many users from their personal lives, or they spread good cheer on Instagram with motivational sayings.
However, the project achieves by far the greatest success on TikTok. Many of the videos there can generate hundreds of thousands or even millions of views.
https://twitter.com/pudgypenguins/status/1735808620133068813
A typical short video of the Pudgy Penguins.
Making Money with Pudgy Penguins – how much Income is Possible?
After Pudgy Penguins are efficiently advertised on social networks beworben, the developers also know how to monetize the project. The monetization is atypical for the NFT sector. The Igloo Company spreads its marketing very widely.
There is an extensive range of fan merchandise. From clothing to plush toys and figures, there is a lot to be found. According to the developers, these products are extremely popular. They have already sold over a million physical products.
The special thing is that users can also participate in the company’s profits through Pudgy Penguins, instead of just generating income from the sale of their NFTs.
The produced plush toys and figures are based on artworks that are based on an NFT. The owner of the NFT receives license rights at the same time when purchasing the token, which generate income from the toys sold.
As a result, Pudgy Penguins not only receive the usual art and collector’s value, but are also valued by investors for the passive income they generate. Of the total of 8,888 Pudgy Penguins, not every single license has been claimed so far. Only selected models are manufactured and sold in physical form.
How high the passive income will ultimately be cannot be said exactly at the current time. The developers promise investors a share of 10-15 percent per product sold.
An own marketplace with Overpass is to be created for the administration and trading of the license rights. However, this does not yet exist. In this context, there is often talk of IP Licensing. The English term stands for licensing intellectual property.
Overpass is scheduled to launch in 2024. The license rights of the NFTs can then be sold to any person, which could lead to the creation of new products.
Successes in Retail further Fuel Hope
Actual successes in retail further fuel hope for the Pudgy Penguins. The makers of the NFT collection were able to reach an agreement with the US retail giant Walmart.
After initial discussions, Walmart ordered 800,000 plush toys from the collection. 16 specific penguins were selected for this. Originally, the number should have been significantly higher with 50 to 100 penguins.
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The prices per plush toy range between three and twelve US dollars. From estimated revenues of 960,000 US dollars, the owners of the 16 selected NFTs each receive 9,000 US dollars completely passively.
On December 20, 2023, the minimum price of a Pudgy Penguin was 10.75 Ether. That corresponds to around 23,000 US dollars or 20,000 Swiss francs.
Do the Pudgy Penguins Have a Future?
So far, the Pudgy Penguins have achieved enormous success, which only a few projects in the NFT sector can follow. The penguins play in a league with market giant Yuga Labs. The well-known studio invented BAYC and is now the copyright owner of CryptoPunks and other popular NFT collections.
According to experts, The Igloo Company earned over 400 million US dollars through its penguins. This almost reaches an estimate for Yuga Labs, which assumes 500 million US dollars in profit since its creation.
Both projects started their business operations in 2021. However, Pudgy Penguins only recently experienced explosive growth. From November to December 2023, the NFT collection was able to more than double its floor price due to news about the cooperation with Walmart – from around five to now 10.50 ETH. The most valuable tokens are traded for over 30 Ethereum (about 67,000 US dollars).
Pudgy Penguins have a market capitalization of 195 million US dollars. With Lil Pudgys, a related collection with a market capitalization of 75 million US dollars is also achieving success.
The ecosystem is now to continue growing in the digital world first. In December, the developers presented Pudgy World, a video game, whose alpha version is scheduled to start in the first quarter of 2024.
Computer games are a popular method to expand digital content such as NFTs with a benefit. The tokens are then found in the games again. The game should be suitable for the masses and record millions of users.
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