The Chronicle of Pudgy Penguins

Key Takeaways

• After facing a founder ousting crisis in 2022, Pudgy Penguins underwent a dramatic transformation under Luca Netz's acquisition. Through aggressive social media strategies and partnerships, they secured significant brand power and successfully expanded into the physical toy business.

• Pudgy Penguins subsequently launched the $PENGU token, establishing it as the world's fourth-largest cryptocurrency by market cap and the largest meme coin launched in the past three years. They are expanding into a comprehensive entertainment IP through various games like Pengu Clash and Pudgy Party, as well as publishing children's content. Additionally, they are accelerating global expansion through collaborations with Asian giants like Lotte and LINE FRIENDS.

• Pudgy Penguins is making history as the first NFT project to enter traditional financial markets, applying for a hybrid ETF combining NFTs and tokens through Canary Capital and targeting an IPO in the near future. They continue to prove that NFTs can create real business value as IP assets rather than mere speculative investments, ultimately striving to achieve the mass adoption of Web3 that no one has accomplished before.

1. Pudgy Penguins NFT: Where It All Began

1.1 Project Launch and the Great Blizzard

Source: New York Times

In July 2021, an NFT collection called Pudgy Penguins, created by four college students including Cole Villemain, made a spectacular debut. The 8,888 uniquely generated Pudgy Penguin NFTs sold out in just 19 minutes at 0.03 ETH each, with celebrities rushing to purchase them and mainstream media outlets like The New York Times taking notice.

Pudgy Penguins continued their expansion in December 2021 by launching the Lil Pudgys collection, consisting of 22,222 smaller penguins. After distributing one free NFT to each Pudgy Penguin holder, they successfully sold out the remaining 13,334 pieces, further expanding their community.

However, dark clouds were gathering behind this brilliant start.

The original team had promised an ambitious roadmap including video games, educational NFT books, and mystery eggs set to hatch on Christmas 2021, but most of these promises went unfulfilled. The eggs hatched into fishing rod NFTs mistakenly labeled as 'Rogs' (the correct term being Rods), disappointing holders who had expected new Pudgy Penguin characters and pushing community anger to its peak. Various allegations were subsequently raised against the team, ultimately leading to a community vote to oust the founders in January 2022. This period would later be known as "The Great Blizzard," recorded as the darkest time in the project's history.

1.2 Luca Netz Enters

In April 2022, when the Pudgy Penguins collection floor price fell below 1 ETH and the community was on the brink of collapse, serial entrepreneur Luca Netz, who had accumulated wealth through various businesses, appeared with an acquisition proposal. Based on his track record of generating $6 million in net profit over five months using the Pudgy Penguins IP before the acquisition, Luca actively pursued the project for $2.5 million.

Source: EO Youtube

Luca Netz is a businessman with quite an unusual background.

Growing up in difficult circumstances, Luca moved through more than 30 residences over nine years with his single mother before dropping out of high school at 16. Due to financial hardship, Luca left high school early to begin working, with his first job packing boxes at Ring Doorbell, then a small startup with just 25 employees. Ring Doorbell experienced explosive growth to over 500 employees in two years before being acquired by Amazon for $1 billion, fortunately giving Luca the opportunity to witness an entire business cycle firsthand at his first job.

Luca then started his first business in online brokerage sales, later achieving great success with a business model importing goods from China for domestic distribution in the United States. By selling his first company to a competitor, Luca became a millionaire at just 19 years old.

Building on this experience, Luca ventured into influencer marketing-based businesses. He achieved another major success through marketing utilizing Instagram, which was not widely known at the time, and went on to establish the venture capital firm Netz Capital in 2019.

Luca's subsequent achievements are well-documented. In 2020, he joined the clothing brand Von Dutch and revived the brand, then joined toy company Gel Blaster as CMO, achieving $100 million in revenue in just 14 months. Thus, Luca was a serial entrepreneur with consecutive successes since his first venture, and he brought the dying Pudgy Penguins back to life with his exceptional business acumen and accumulated experience.

1.3 The Beginning of Revival

After acquiring Pudgy Penguins, Luca Netz and his initial team quickly began reorganizing the business and community.

Source: Pudgy Penguins

On the business front, they first recruited advisors from various industries spanning Web2 and Web3 to begin actualizing the project roadmap. In July 2022, they secured a collaboration with major toy distributor PMI Toys, starting to create dolls and figures using the Pudgy Penguins IP and expanding their revenue model. In this process, the Pudgy Penguins team devised an early model for Web3 IP business, borrowing the IP of individual NFT owners and sharing a portion of physical toy sales revenue. By proactively presenting a way for holders to directly share in the collection's revenue, the Pudgy Penguins team fostered internal cohesion.

Luca's previous business expansion experience was clearly reflected in Pudgy Penguins. The team uploaded Pudgy Penguins GIFs to GIPHY immediately after the acquisition and created short-form content using Pudgy Penguin characters through Instagram accounts. This strategy proved highly successful, achieving over 1 billion total GIF views and surpassing 100,000 Instagram followers in just six months, establishing the Pudgy Penguins brand.

Source: Sotheby’s

In November 2022, Pudgy Penguins auctioned 10 Pudgy Penguin NFTs through Sotheby's, the world's largest auction house, in a collaboration that included issuing Soulbound Tokens (SBTs) to buyers. This marked Sotheby's first crypto-related collaboration and became a symbolic event for the community by including former founder Cole Villemain's penguin in the auction, while significantly raising awareness of Pudgy Penguins among the general public.

2. Market Breakthrough Through Physical Products and Brand Collaborations

2.1 Building Strong Brand Power

One of the key strategies that enabled Pudgy Penguins to leap from a simple NFT project to a global IP was their aggressive and strategic brand collaborations. Luca Netz and his team understood that building strong brand power was essential for Pudgy Penguins' success, and they exponentially expanded Pudgy Penguins' recognition through aggressive social media strategies.

2.1.1 Viral Strategy Through Social Media

Luca Netz's previous business experience was directly incorporated into Pudgy Penguins' social media strategy. Immediately after acquiring the project in April 2022, the team began mass uploading Pudgy Penguins GIFs to GIPHY. This seemingly simple strategy yielded remarkable results. They achieved over 1 billion views in just six months, and people began using Pudgy Penguins GIFs in everyday messages even without owning a Pudgy Penguins NFT.

Short-form content on Instagram particularly appealed to Gen Z and millennials. Instagram followers surpassed 100,000 within six months of the acquisition and exceeded 1 million by the end of 2024. Short, entertaining videos featuring cute penguin characters recorded high sharing rates and significantly contributed to brand awareness.

2.1.2 Penetration into the Web2 IP Industry

Pudgy Penguins sought to accelerate the mainstreaming of its brand through aggressive penetration into the Web2 IP industry, actively participating in major IP events to position its IP not merely as digital assets, but as content capable of competing in the worlds of licensing and pop culture.

In June 2023, Pudgy Penguins participated in Licensing Expo 2023 held in Las Vegas. This event is the largest trade show in the licensing industry where the world's top IP brands such as Disney and Pokémon gather. At this venue, Pudgy Penguins introduced NFT IP as licensable content, establishing its first touchpoint with Web2 companies.

Subsequently, in July of the same year, they further materialized their penetration into the Web2 IP world by setting up a booth at San Diego Comic-Con (SDCC) 2023, America's largest pop culture event. SDCC is an event that attracts over 100,000 fans annually, and Pudgy Penguins made its mark as the first Web3 brand to operate an official booth. This was evaluated as a symbolic moment that went beyond mere exposure, announcing Web3's innovation to the traditional entertainment industry.

This Web2 IP industry penetration strategy proved effective as Pudgy Penguins' cute character design and community-centered approach aligned well with Web2's mass appeal. Through participation in Licensing Expo and SDCC, Pudgy Penguins crossed the threshold of IP licensing, which became the foundation for subsequent brand partnerships. As a result, Pudgy Penguins was able to transcend the limitations of Web3 and establish itself in Web2's vast ecosystem, fully launching its leap toward becoming a global IP.

2.1.3 Building Strategic Brand Partnerships

Source: Pudgy Penguins

Starting with a partnership with toy manufacturer PMI in July 2022, Pudgy Penguins systematically expanded their brand collaborations. After establishing the foundation for physical toy production through PMI, Pudgy Penguins secured a distribution partnership with Retail Monster in February 2023, building a global distribution network for Pudgy Toys. This enabled Pudgy Penguins toys to enter major retail chains like Walmart and Target, becoming a prime example of an NFT project successfully expanding into the physical economy.

Collaborations in the food industry also achieved notable results. The November 2022 cereal package collaboration with Kellogg marked the first instance of an NFT project collaborating with a mass consumer brand, becoming an important turning point for Pudgy Penguins to establish itself as a brand in everyday life beyond digital assets. In 2024, they launched limited edition Pudgy Penguins cookies through a collaboration with premium cookie brand Last Crumb, strategically targeting both young consumers and the premium market simultaneously.

Innovation in technology and digital fields continued as well. In early 2023, they collaborated with Hologram Labs to develop 3D modeling and AR/VR content for Pudgy Penguin characters, serving as a preemptive investment for the metaverse era and an important foundation for expanding Pudgy Penguins IP into digital spaces. In February 2024, they partnered with Unstoppable Domains to launch the '.pudgy' domain service. This allowed Pudgy Penguins community members to build their own websites and establish digital identities in the Web3 ecosystem by sending and receiving cryptocurrency.

Expansion into fashion and lifestyle sectors also flourished. In early 2024, they launched a Pudgy Penguins design phone case collection through a collaboration with premium phone case brand Velvet Caviar, creating another touchpoint for spreading Pudgy Penguins IP through everyday accessories. These lifestyle products particularly resonated with Gen Z and millennials, contributing to positioning Pudgy Penguins as a trendy lifestyle brand.

The June 2023 partnership with WME talent agency signaled Pudgy Penguins' full-scale entry into the entertainment industry. As one of Hollywood's largest talent agencies, this partnership opened possibilities for Pudgy Penguins to expand into various media fields including film, TV, and music. These multi-faceted brand collaborations became the key driving force for Pudgy Penguins to grow into a genuine global IP beyond the limitations of NFTs.

2.2 The Great Success of Physical Toys

Unfortunately, the situation in mid-2022, immediately after Luca Netz acquired Pudgy Penguins, was nothing short of chaotic. The Terra Luna incident triggered a crypto market collapse, NFT trading volume decreased by 95%, the royalty system collapsed, and Ethereum fell 80% all at once. At one point, Luca actually had to dig into his bank accounts and invest more money into the business than the original purchase price.

But this was when the brand power Pudgy Penguins had built truly shined. Pudgy Toys, made with Pudgy Penguins IP, achieved massive success.

Source: @ST_McFly

The performance of Pudgy Toys was remarkable.

In May 2023, Pudgy Penguins launched Pudgy Toys, developed through community licensing, on Amazon. Pudgy Toys recorded over $500,000 in sales during its first weekend and achieved over $10 million in revenue with more than 1 million units sold in its first 12 months. Pudgy Toys ranked #1 in multiple categories on Amazon, and four months after launch in September 2023, they entered Walmart stores, one of America's largest retailers and highest-revenue companies, debuting in 2,000 U.S. stores. Toy Insider subsequently selected Pudgy Toys as the best summer toy of 2023.

Source: Pudgy Penguins

In February 2024, they expanded their relationship with Walmart by adding 1,100 new stores, bringing the total to 3,100 U.S. Walmart locations selling Pudgy Toys. This expansion included Walmart-exclusive products: five collectible figures and 25 Lil Pudgy Mystery Igloos.

Beyond Walmart, Pudgy Toys successfully entered various retail outlets: UK toy retailer Smyths in October 2023, Target stores across the U.S. and Australia's largest retail chain Big W in May 2024, and 2,000 Walgreens stores in June 2025. In February 2025, they entered amusement parks nationwide through a collaboration with Basic Fun.

One distinguishing feature of Pudgy Toys is the natural onboarding of buyers into the Web3 environment. Each toy comes with a QR code that unlocks traits and collectibles in Pudgy World, an online open-world game powered by zkSync. In Pudgy World, users can play games or customize their Pudgy Penguin characters with collectibles. Pudgy Penguins has successfully onboarded about 20% of buyers to the on-chain environment through Pudgy World, with over 160,000 users as of January 2025.

Thus, Pudgy Penguins achieved success in the physical toy business through the strong brand power built from aggressive social media marketing and brand collaborations in Web2. After launching Pudgy Toys, Pudgy Penguins finally became a team generating stable revenue, providing the foundation for Pudgy Penguins to leap toward bigger dreams.

3. Signal for Major Expansion: Launch of $PENGU and Abstract

3.1 Launch of $PENGU

On December 17, 2024, Pudgy Penguins finally announced the launch of their official token, $PENGU. This was not merely the launch of another meme coin, but a strategic move toward building the "multi-billion person global community" that Pudgy Penguins ultimately pursues.

Over the past three years, Pudgy Penguins has achieved what no other crypto-native IP has accomplished. With over 50 billion social media impressions, over 1.5 million toys sold in more than 10,000 stores worldwide, and millions of social media followers, Pudgy Penguins had already demonstrated overwhelming success in the Web2 realm. However, the Pudgy Penguins 'community' was still limited in expansion due to the restricted supply of 8,888 NFTs and 22,222 Lil Pudgys.

The Pudgy Penguins team decided to launch $PENGU to break through these limitations and create a true "social currency." They determined that the brand's power could only grow stronger when more people empathized with and became economically aligned with Pudgy Penguins' vision. To achieve this, the Pudgy Penguins team made the bold decision to launch the token on the Solana chain despite being an Ethereum-based NFT project. Solana offered a broader liquidity pool and active DeFi ecosystem, and most importantly, provided an environment where even small traders could easily participate due to low gas fees. Additionally, by 2024, Solana had become the home of successful meme coins like BONK and WIF, establishing itself as the center of meme coin trading, and major CEXs like Binance and Coinbase were expanding Solana token support, providing opportunities for exposure to more users.

Source: Pudgy Penguins

The $PENGU token distribution strategy was designed with the clear goal of "bringing as many people as possible into the Pudgy ecosystem." Approximately 23 billion tokens, representing 25.9% of the total supply of 88,888,888,888, were allocated to the community, making it one of the largest airdrops in crypto history at $1.5 billion based on market value at the time.

The most notable aspect was that a significant portion (about 24%) of the total airdrop volume was distributed to on-chain ecosystem contributors who had no direct relationship with existing Pudgy Penguins. Active on-chain users on Ethereum and Solana, holders of major NFT projects, and the broader crypto community became eligible to receive $PENGU. As a result of this massive airdrop, over 6 million wallets became eligible to claim $PENGU, representing an unprecedented scale of community expansion for a single project.

When $PENGU officially launched on December 17, 2024, the market reacted explosively. Market capitalization started at $2.5 billion and soared to a peak of $3.5 billion, with on-chain holders exceeding 500,000 within a week. Within a month of launch, $PENGU positioned itself as the fourth-largest meme coin by market cap after DOGE, SHIB, and PEPE, achieving the highest market capitalization among meme coins launched in the past three years.

Source: Pudgy Penguins

The successful launch of $PENGU established Pudgy Penguins as "crypto's true mascot" beyond being just an NFT project or toy brand. The general public, not just NFT holders, became aware of Pudgy Penguins, establishing its status as the only crypto-native IP spanning Web2 and Web3. The community expanded from approximately 30,000 NFT holders to over 600,000 token holders, uniting users from various chains and protocols under one vision.

With the token giving millions a direct stake in Pudgy Penguins' success, a structure has emerged where brand value growth directly drives token value. Through $PENGU, Pudgy Penguins created not just a token, but a gateway for millions to join their vision. The team is actively listing $PENGU across numerous global exchanges, large and small, ensuring easy investment access for all believers in Pudgy Penguins and its team.

3.2 Abstract Mainnet Launch

Source: Pudgy Penguins

Alongside preparing for the $PENGU launch, the Pudgy Penguins team embarked on a new challenge: developing Abstract, an Ethereum Layer 2 chain aimed at mainstream blockchain adoption. Abstract had a clear vision to solve the complex user experience problems of existing blockchains and create a platform easily accessible to general consumers. To achieve this, the Pudgy Penguins team secured investment from Founders Fund, famous for investing in Stripe and SpaceX, and strengthened their technical capabilities by acquiring Frame, an NFT-specialized chain.

Abstract's core differentiator lies in its identity as a 'consumer blockchain.' While most blockchains focus on technical completeness or decentralization ideals, Abstract focused on providing everyday digital experiences like games, social networks, and entertainment. Particularly noteworthy is the introduction of Account Abstraction-based wallets. Users can simply log in with Google or Apple accounts to create wallets that can be shared across multiple apps. This unified solution encompasses both existing crypto users and new users coming from Web2, aiming to remove key barriers to blockchain mainstream adoption.

While Abstract is already growing its ecosystem rapidly enough to be considered almost independent from the Pudgy Penguins team, it's also effectively fulfilling its role as an infrastructure layer for expanding Pudgy Penguins' branding. Starting with $PENGU being used as tips for Abstract portal streamers and onboarding Pudgy Penguins' own games (discussed later), Abstract is expected to become an ark for onboarding the massive Web2 community that Pudgy Penguins is building into Web3.

4. Pudgy Penguins Today: Toward a Global Top IP

4.1 Accelerating Global Expansion

4.1.1 Even Bigger Brand Collaborations

Entering 2025, Pudgy Penguins accelerated its transformation into a true global lifestyle brand by venturing into bolder and more diverse industries. While previous collaborations focused on building brand awareness and market entry, 2025's partnerships represented strategic expansion to establish Pudgy Penguins as an essential brand in everyday life.

Deeper collaborations emerged in entertainment and toys. Through a partnership with Basic Fun in early 2025, they launched a special amusement park-themed toy line, marking an important step in expanding Pudgy Penguins' physical experiences. Particularly notable was the collaboration with PEZ. Joining the PEZ dispenser and candy lineup alongside global IPs like Pokémon and Disney signified that Pudgy Penguins was now recognized as a legitimate mainstream character brand. Pudgy Penguins also enriched offline events and brand experiences by launching custom ICEE costumes for their game Pudgy Party in collaboration with ICEE, America's iconic slush drink brand. These multi-layered collaborations symbolically demonstrated that Pudgy Penguins had evolved beyond simple digital assets into a comprehensive entertainment brand bringing joy to people's daily lives.

The integration with sports also reached new dimensions. In September 2024, Pudgy Penguins announced a collaboration to feature Pudgy Penguins NFTs on the uniforms and merchandise of CD Castellón, a Spanish second division football team. This was the first-ever partnership to include NFTs on professional football team uniforms. Adding to this, the August 2025 partnership with NASCAR elevated Pudgy Penguins' recognition to another level. Pudgy Penguins was wrapped entirely on Ricky Stenhouse Jr.'s car from HYAC Motorsports, racing in the Labor Day weekend race, one of NASCAR's four most popular events. This introduced Pudgy Penguins to motorsports fans while symbolically expressing the brand's dynamism and speed. The sight of a vehicle bearing the Pudgy Penguins logo racing on the track was recorded as a historic moment where a Web3 project met traditional sports industry.

The collaboration with Lufthansa's Miles & More program was also innovative, introducing a system where purchases from the Pudgy Penguins goods shop converted to airline miles, presenting a new fusion model of physical economy and loyalty programs.

Additionally, Pudgy Penguins expanded into the fashion market through collaboration with streetwear brand VANDYTHEPINK and created exclusive collaboration products with hardware wallet brand Ledger.

4.1.2 Targeting Asian Market

Source: Igloo APAC

Pudgy Penguins has recently been intensively targeting the Asian market, gradually proving through various events and major brand collaborations that Pudgy Penguins is an IP that resonates in Asia. Igloo recently established a separate Asia-Pacific (APAC) division specifically for conquering the Asia-Pacific region and is rapidly spreading Pudgy Penguins and $PENGU throughout Asia.

Particularly through "Pengu Takeover" events, Pudgy Penguins is exposing the brand to audiences worldwide, broadcasting Pudgy Penguins on billboards in major hotspots in Seoul and Tokyo, and in Bangkok, they promoted Pudgy Penguins using entire high-rise buildings.

Brand collaborations are also being conducted with major corporations in each country. In 2024, they signed a strategic partnership with Lotte, one of Korea's top 5 conglomerates, launching limited edition collectibles. In February this year, they announced a collaboration with Minini from LINE FRIENDS, Korea/Asia's largest IP brand. The partnership with Chinese toy collectibles company Suplay laid the foundation for entering China, the world's largest toy market. In August this year, they placed collectible photo cards in collaboration with most major convenience stores in Japan and achieved success by placing Pudgy Toys in Don Quijote, Japan's largest retail store.

Luca Netz previously stated on the 0xThreadGuy podcast, "IP has historically tended to spread from West to East, but the next decade will take the form of culture being transmitted from the East. Anyone in the IP industry needs to study this." Pudgy Penguins is expected to capture this phenomenon early, preempt the Asian market, expand Pudgy Penguins' recognition through content produced from these regions, and solidify $PENGU's position.

4.2 Building a Gaming Ecosystem

Pudgy Penguins actively entered the gaming industry to evolve beyond simple collectibles into an interactive entertainment brand. Their gaming strategy was to build a portfolio spanning various platforms and blockchains, targeting different gamer demographics.

4.2.1 Pengu Clash

Source: Pengu Clash

Launched on TON and Abstract in May 2025, Pengu Clash is at the core of Pudgy Penguins' Web3 gaming strategy. Developed in collaboration with Elympics, this skill-based game was designed to be simple yet addictive. Within the simple rule of pushing opponents off icebergs, players can employ various strategies and techniques.

Pengu Clash is deployed on both Abstract and TON chains, capturing both PC environment and Telegram-based mobile users. Particularly, it's provided as a Telegram mini-app through TON, allowing mobile users to play immediately without installing a separate app, significantly lowering entry barriers.

Pengu Clash recorded over 60,000 players and 170,000 gameplays in its first week alone, and achieved over 200,000 players and 1 million plays within a month of launch.

4.2.2 Pudgy Party

Pudgy Party is the Pudgy Penguins team's first mobile-exclusive game, developed as a "Fall Guys"-style competitive obstacle racing game. Pudgy Party was expected to generate significant response from Web2 mobile gamers who had been thirsting for quality by penetrating the mobile gaming ecosystem, where high-quality games had become relatively rare, with their proprietary IP. Launched on August 29, Pudgy Party generated heated response by entering #1 in U.S. App Store racing games and top 30 in free games on its first day.

Notably, Pudgy Party features tradeable character skins on Mythical Games' marketplace, which can be earned through gameplay and event participation. The "Power Pudgy" skin, initially distributed free to Comic-Con 2025 attendees, is now trading at approximately $4,300, reflecting the tremendous demand for these digital assets.

4.2.3 Vibes TCG

Developed by Orange Cap Games, Vibes TCG is a trading card game utilizing Pudgy Penguins IP. The first set, 'Enter the Huddle,' was released in Q4 2024, attracting attention with $2 million in pre-seed angel investment.

The unique aspect of this game is that it can be played in both digital and physical forms. By offering both the traditional TCG experience of collecting physical cards and convenient play on digital platforms, it embraces players with diverse preferences.

Vibes TCG's physical cards have gained tremendous traction, riding the wave of the recent physical card trading boom. Free cards distributed at Comic-Con now command $70-150 each based on condition, while a booster box with 10 first edition deck sets recently sold for $5,000, demonstrating strong market demand.

4.3 Content Expansion: Targeting Children's Market

Pudgy Penguins' greatest strength, "cuteness," has tremendous potential for entering the children's market, and as the children's market is growing rapidly, it occupies a crucial position for Pudgy Penguins' long-term success. Recognizing this, Pudgy Penguins is actively attempting expansion into the children's market, with the prime example being the publication of children's books. In May this year, Pudgy Penguins announced a partnership with Random House Children's Books, the world's largest children's publisher, to release their first children's book 'Worst Birthday Gift Ever.' Random House is a major publisher that collaborates with traditional large IPs like Disney, so high exposure for Pudgy Penguins IP can be expected.

Source: Lil Pudgys

Additionally, the Lil Pudgy Show, serialized since spring 2025, is an important milestone in Pudgy Penguins' media strategy. This animated series, produced in collaboration with TheSoul Publishing, follows the adventures of four penguin roommates: Atlas, Eureka, Snofia, and Springer. The series' setting, 'UnderBerg,' is a mysterious world hidden inside an iceberg, offering infinite storytelling possibilities. Each character has unique personalities and backgrounds, containing elements that viewers of various ages can relate to.

TheSoul Publishing, the publisher of the Lil Pudgy Show, is a global production company that has delivered content to over 2 billion people, and their collaboration is expected to become a powerful channel for Pudgy Penguins to reach child audiences worldwide.

5. The Future of Pudgy Penguins: Completion as a Global IP

5.1 Institutional Market Entry and ETF Realization

Source: Pudgy Penguins

Pudgy Penguins is pioneering a path that no Web3 IP has achieved before: entering institutional markets. Pudgy Penguins has appeared in ETF advertisements by major asset managers like VanEck and Bitwise, and these institutions have shown support by changing their social media profiles to Pudgy Penguins. Recently, they had the honor of ringing the Nasdaq opening bell with VanEck, which was unprecedented for a Web3 project.

In March this year, Pudgy Penguins submitted an ETF application to the SEC through Canary Capital, shocking the industry. This ETF was designed as a hybrid structure including both PENGU tokens and Pudgy Penguins NFTs, not just tokens alone, presenting a new paradigm of financializing NFTs.

Source: Pudgy Penguins

The Pudgy Penguins ETF has been progressing smoothly through the approval process. In June this year, CBOE submitted a 19b-4 application for Canary Capital's Pudgy Penguins ETF, and in July, the SEC acknowledged Canary Capital's application, officially beginning the review. Recently, the Pudgy Penguins team even took on an official regulatory advisory role for the U.S. government, positioning that holds tremendous long-term strategic value. By participating in the regulatory formation process, Pudgy Penguins can create favorable market conditions for themselves while proactively managing regulatory risks. Additionally, the halo effect of being a "government-recognized project" will significantly lower participation barriers for conservative institutional investors.

5.2 IPO and Traditional Market Entry

Source: Yahoo Finance

One of Pudgy Penguins' most ambitious plans is to achieve an Initial Public Offering (IPO) by 2027. In an August 2025 interview, Luca Netz expressed strong commitment to an IPO, stating, "I would be very disappointed in myself if we don't go public within the next two years." This is not mere aspiration but a plan based on concrete goals, with Pudgy Penguins targeting $50 million in revenue for 2025, which will be an important milestone for the IPO.

A project that started as NFTs going public in traditional stock markets would be unprecedented, and if successful, could bring massive change to the entire Web3 industry. This would prove that NFT collections can evolve into real companies with sustainable business models beyond simple digital assets. Pudgy Penguins has already secured stable revenue streams through toy sales, licensing, and brand partnerships, which could be attractive to traditional investors.

5.3 Completion as a Global IP

Source: @jpgKenny

Pudgy Penguins' ultimate goal is clear: to become a "global IP surpassing Disney." This is not wishful thinking but a realistic goal based on systematic strategy and execution. Pudgy Penguins has already achieved in just three years what traditional IP companies built over decades. With over 50 billion social media impressions, product sales in over 10,000 stores worldwide, millions of followers, and now even their own blockchain and token ecosystem, Pudgy Penguins occupies a unique position spanning Web2 and Web3.

Pudgy Penguins' roadmap embodies this vision. The recently launched Pudgy Party will naturally bring Web2 gamers into the Pudgy ecosystem, and various content and product lineups will enable full-scale targeting of the children's market. The children's book publication with Penguin Random House and animated series production with TheSoul Publishing show that Pudgy Penguins is evolving beyond a simple NFT project into a comprehensive entertainment company. Pudgy Penguins' success holds significant meaning for the entire Web3 industry. It's proving that NFTs are not merely speculative assets but IP assets capable of creating real business value. By launching the $PENGU token, they secured over 600,000 holders and massively expanded their community, built technical infrastructure through Abstract, and are creating connections with traditional financial markets through an IPO. All these elements combined, Pudgy Penguins is truly becoming the "Web3 Disney."

Pudgy Penguins' journey has only just begun. However, looking at their achievements over the past three years and their roadmap ahead, it's clear they're not just dreaming but systematically realizing their vision. Breaking down barriers between Web2 and Web3, connecting digital and physical, and growing with the community, Pudgy Penguins presents a new model for next-generation global IP. Their goal of a "global community of multi-billions" is no longer an impossible dream but an approaching, achievable future.