Yesterday, the team at Pudgy Penguins stealth dropped their Pudgy Penguins NFT for existing holders and public minting. The minting generated a staggering 430 ETH, distributed to individual project members. In a move, that is a bit suspect.
Pudgy Penguins Syphones Liquidity
On Monday, 22,222 Pudgy Penguins dropped for a pre-approved list of token holders and public minting, which sold for around $1.5 million, equating to 430 ETH. According to the NFT collector the Economist on Twitter, it seems these proceeds have gone to five personal wallet addresses. With each wallet getting 84.57 ETH from the drop.
Likewise, it appears that the owners of the wallets have transferred and distributed the funds in different ways. Therefore, pointing to personal use rather than its use on the Pudgy Penguins project. However, it is possible that the members distributed the funds into the project and its treasury, although it does seem unlikely.
The stealth drop by Pudgy Penguins outlines why the NFT industry should monitor liquidity. Selling assets stealthily in a sudden drop means that companies can get away with making huge returns without accountability. As a result, it is important to ensure that project members are looked after by monitoring public treasuries. NFT projects like Pudgy Penguins must be fully transparent in the future to ensure funds are not distributed to individuals.
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