PENGU Describes Itself As

An Ethereum-based NFT collection featuring 8,888 unique cartoon penguin characters. Initially launched in 2021, the project has expanded its product offerings from an NFT-focused project to a global web3 brand, providing physical merchandise and brand extensions.

Project Function

• Pudgy Penguins (Main Collection): 8,888 unique penguin NFTs on Ethereum, each generated from a mix of hand-drawn traits (different outfits, moods, backgrounds, etc.).
• Lil Pudgys: A companion NFT collection of 22,222 “Lil Pudgy” penguins, introduced in December 2021. Lil Pudgys are smaller, cute penguin characters that complement the main collection and were either airdropped or sold to broaden the community.
• Pudgy Rods: Another set of NFTs tied to the ecosystem – originally launched as mysterious “Pudgy Presents” in 2021 and later revealed to be animated fishing rods (an inside joke about “rodding” on social media). Approximately 7,500 Pudgy Rods exist.
• Pudgy Toys (Figurines and Plush): In 2023, Pudgy Penguins launched a line of physical toys, including vinyl figurines and plushy penguins.
• Licensing and Collaborations: Pudgy Penguins has leaned into an IP licensing model to proliferate its characters across media. The brand signed with WME talent agency in 2023 to explore opportunities in TV, film, books, and gaming.
• Marketplace and Tech Integrations: Pudgy Penguins operates an official marketplace for its NFTs (and possibly future digital collectibles from Pudgy World) via its website. They have also introduced features like the Pudgy Bridge, enabling cross-chain transfers of their NFTs to networks like Arbitrum Nova or Polygon for easier trading.

Token Utility 

PENGU is the official meme and community token of the Pudgy Penguins ecosystem. Launched on Solana in Q4 2024, PENGU aims to lower the barrier to entry for users engaging with Pudgy Penguins products and services. Currently, the token does not offer active utility for holders. However, the project team has outlined potential future use cases, including serving as a currency within Pudgy World and the Pudgy Penguins Marketplace, providing rewards for community moderators, and enabling governance participation.

About The Founders

Luca Netz, the CEO of Pudgy Penguins and Igloo Inc. acquired the brand in 2022. Luca previously was a serial entrepreneur, creating his first e-commerce business in at age 18. He later founded Gel Blaster, a fast-growing toy brand. (X)

Risks of PENGU

Like an investment in other crypto assets, there are some general risks to investing in PENGU. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in PENGU is subject to the following specific risks:

• PENGU operates using smart contracts, which have an association with vulnerabilities and security breaches. Despite undergoing successful audits by well-regarded third-party entities, it is essential to acknowledge the existence of inherent risks. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with PENGU. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The PENGU community and Pudgy Penguin founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of PENGU have no recourse to the PENGU community, Pudgy Penguin founding team, or Uphold if PENGU declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing PENGU on the Uphold Platform, Uphold performed due diligence on PENGU and determined that PENGU is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of PENGU, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of PENGU.
• Any marketing materials put forward by the PENGU social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with PENGU, including any code defects, security breaches and other threats concerning PENGU and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with PENGU, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of PENGU.