PENGU trader flipped $10k to $3 on Pudgy Penguins tokens

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As a seasoned researcher who has witnessed the wild and unpredictable world of crypto trading, I can’t help but feel a pang of empathy for this unfortunate soul who got swept away by the icy waters of the PENGU token debacle. The sheer magnitude of the loss, from $10,000 to less than $3 in mere seconds, is a stark reminder of the risks inherent in this fast-paced, ever-evolving market.

Unfortunately, a hapless trader parted with $10,000 when they purchased Pudgy Penguins’ PENGU tokens just prior to an NFT-related airdrop, which left them empty-handed.

On December 17th, an unfortunate trader wished for snowflakes instead, when they attempted to jump ahead of the Pudgy Penguins crypto airdrop. As it turned out, the Pudgy Penguins (PENGU) token skyrocketed to a market cap of over $3 billion mere hours after its launch. However, one investor unwittingly bought this coin at an absurd capitalization of $14 trillion.

In a matter of minutes, the original $10,000 investment drastically dropped to almost nothing, as suggested by blockchain data and comments from the community.

somebody bought $PENGU @$14T mc turning his $10k to $5 in seconds lmfao

— bx1 (@bx1core) December 17, 2024

From $10k to $3, PENGU trader sunk by iceberg

According to blockchain information, a mysterious investor seems to have made a substantial purchase of PENGU tokens on Jupiter just before its launch.

These traders, occasionally called “snipers,” swiftly grab newly issued tokens using sophisticated trading instruments. Yet, an error within Jupiter’s decentralized platform led this potential PENGU sniper to a pool with minimal liquidity instead.

DEX aggregators like Jupiter calculate crypto prices using a system that autonomously adjusts price tags based on demand, known as a bonding curve.

Sometimes, crafty individuals with advanced tech skills exploit the system by generating unstable trading pools that are prone to extreme volatility. Because it’s easy for people to establish a liquidity position, traders may unwittingly buy tokens from faulty contracts, leading to substantial financial losses.

In this scenario, it appears that the trader may have unknowingly invested in one of these manipulated token pools without first checking the contract address or market cap of the tokens. Subsequently, after exchanging 45 wrapped Solana (SOL), the buyer ended up with only 78 tokens, which were valued at less than $5 when the report was published. Despite this initial mistake, the trader later purchased approximately 62,585 PENGU coins, worth around $2,000.

Pudgy Penguins roadmap

The resurgence of non-fungible tokens (NFTs) has seen Pudgy Penguins’ token soar, with Iglo Inc.’s NFT collection being among the top three NFT projects in terms of market capitalization. At one point, a single Pudgy NFT was priced higher than a Bitcoin.

After the airdrop, the digital artworks themed around penguins, which were based on blockchain technology, typically sold for an average of $60,000 each. A 50% correction then set the minimum price at approximately 15.63 Ether (ETH).

As a crypto investor, I’m excited about what lies ahead for Igloo Inc., as they’re planning to activate the PENGU features on Ethereum‘s blockchain and launch their layer-2 Abstract Chain network. This is a significant step, and I can’t wait to see how it unfolds. Moreover, the Pudgy Penguins’ PENGU token has a massive total supply of 88.88 billion tokens, with seven million eligible addresses for an upcoming airdrop. That’s quite a lottery ticket for potential holders!

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2024-12-17 23:06