Pudgy Penguins

In July 2021, four university students minted 8,888 hand-drawn penguin NFTs on Ethereum, calling the project Pudgy Penguins. The launch was a hit, but within months mismanagement and missed promises, including a metaverse game that never materialized, shattered community trust. By early 2022, the floor price had cratered and the project looked dead.

Then Luca Schnetzler stepped in. The entrepreneur, who had founded streetwear label The Hundreds, bought the entire project for 750 ETH (roughly $2.5 million) in April 2022 and installed himself as CEO. He immediately shifted focus from crypto hype to physical products. In May 2023, the first Pudgy Toys, plush figures and collectibles, hit Amazon. Each toy came with a QR code that unlocked a digital Forever Pudgy NFT on zkSync Era, a clever phygital bridge. Within seven months, the company had sold over 1 million toys and generated more than $10 million in revenue from that line alone.

Retailers took notice. By 2024, Pudgy Penguins plushies were on shelves at Walmart, Target, Walgreens, and Selfridges in the UK. The brand also launched Pudgy World, an open-world multiplayer game, and announced a feature-length animated film in development. Its NFT floor price surged past 30 ETH in March 2024, overtaking Bored Ape Yacht Club as the most valuable blue-chip collection. Owned by LSLTTT Holdings and based in Los Angeles, Pudgy Penguins has become a case study in how a digital brand can cross into the mainstream without losing its core community.[edit]