TAKEAWAYS
When people think about non-fungible tokens (NFTs) and cryptocurrencies, they often wonder: What makes a digital asset valuable? While some projects focus on building a strong brand, others rely on community-driven hype. Two great examples of these different approaches are Pudgy Penguins and Dogecoin (DOGE).
Pudgy Penguins is an NFT collection that has grown beyond the crypto world, expanding into toys, merchandise, and licensing deals. Meanwhile, DOGE, originally created as a joke, has become one of the most well-known cryptocurrencies commonly used for tipping, payments, and internet culture movements.
Despite their differences, both have achieved long-term success. This article will explore how Pudgy Penguins and DOGE create value, their unique strategies, and what we can learn from their tokenomics.
What is Pudgy Penguins?
Pudgy Penguins is a notable collection of 8,888 NFTs characterised by the adorable, chubby cartoon penguin designs which embody the themes of love, empathy, and compassion. Each NFT within the collection possesses unique rarity traits, including various shirts, hats, glasses, and backgrounds, enhancing their individual appeal.
History and development
Pudgy Penguins was launched in July 2021 as a collection of 8,888 unique, chubby penguin NFTs on the Ethereum blockchain. The project quickly gained attention due to its cute, friendly artwork and a strong, engaged community known as “The Huddle” or “Pengus”.
However, despite its early success, Pudgy Penguins soon faced major challenges. The original founders failed to deliver on promised developments, including a children’s book and a metaverse game. This lack of execution, combined with allegations of mismanagement and misuse of funds, led to a loss of trust within the community.
By January 2022, the Pudgy Penguins community had voted to remove the original founding team, marking one of the first major examples of community-driven governance in the NFT space.
Following the ousting of the original team, entrepreneur Luca Netz stepped in and acquired the Pudgy Penguins intellectual property (IP) for 2,500 ETH (approximately US$2.5 million) in April 2022. With his background in brand building and e-commerce, Netz aimed to transform Pudgy Penguins from a struggling NFT collection into a globally recognised brand.
Under Netz’s leadership, Pudgy Penguins underwent a complete revitalisation, focusing on expansion beyond Web3 and integration into mainstream markets. As a result, Pudgy Penguins has established itself as one of the most successful and innovative NFT projects.
Pudgy Penguins’ success
Pudgy Penguins has transcended the traditional NFT model by launching physical products and licensing agreements, allowing the brand to reach consumers beyond the crypto space.
To date, Pudgy Penguins has launched Pudgy Toys, a collection of plush toys and figurines sold in major retail stores like Walmart.
The Pudgy World on-chain open world game was launched in 2024 supported by zkSync, and combined with physical toy QR codes to achieve a closed-loop experience of digital and reality.
Moving beyond NFTs, Pudgy Penguins characters can be seen on TV and as animations; they also feature in stories, all of which help position it as a character-driven IP. These bridge the gap between Web2 and Web3, making NFTs more accessible to the general public.
Pudgy Penguins has built one of the largest social media followings among NFT brands. Unlike many NFT projects that focus solely on Twitter (X) and Discord, it also leverages Web2 platforms like Instagram and TikTok to increase visibility and attract a non-crypto audience. This focus on storytelling and emotional branding has made Pudgy Penguins one of the most recognisable NFT projects.
What is DOGE?
DOGE is a peer-to-peer, open-source cryptocurrency that utilises the Shiba Inu dog from the popular “Doge” meme as its logo.
History and development
DOGE was created on 6 December 2013 by Billy Markus, a software engineer from IBM, and Jackson Palmer, a product manager at Adobe. Initially intended as a lighthearted parody of Bitcoin, DOGE was inspired by the Doge meme, which features a Shiba Inu dog with humorous captions written in Comic Sans font type.
From the beginning, DOGE attracted a strong and passionate online community, often referred to as the “Doge Army”. Its low price and fast transaction times made it popular for tipping content creators on platforms like Reddit and Twitter (X). DOGE became one of the first cryptocurrencies to be widely used for micro-transactions, donations, and crowdfunding efforts.
One of the earliest and most famous DOGE-funded initiatives was the 2014 Winter Olympics fundraising campaign, where the community raised US$50,000 worth of DOGE to sponsor the Jamaican bobsled team, which had qualified but lacked funding to go. This event demonstrated the power of decentralised crowdfunding and community-driven efforts, setting the stage for DOGE’s future success.
DOGE experienced a major resurgence in 2021 largely due to Elon Musk’s public endorsements. Musk, the CEO of Tesla and SpaceX, frequently tweeted about DOGE, calling it “the people’s crypto” and even proposing that SpaceX would send “a Dogecoin to the moon”.
These endorsements, along with the retail investor movement on platforms like Reddit’s r/WallStreetBets, caused DOGE’s price to skyrocket from US$0.004 in early 2021 to an all-time high of US$0.73 in May 2021. At its peak, Dogecoin had a market capitalisation of over US$80 billion, briefly making it one of the top five cryptocurrencies by market capitalisation.
DOGE’s success
Unlike Pudgy Penguins which had built its success through brand expansion and retail integration, DOGE thrived on the meme culture, tipping culture, and grassroots community support.
DOGE’s rise to prominence can be largely attributed to its deep connection with the internet meme culture and tipping culture.
It is truly a case of a meme that became a movement – its meme-driven appeal has led to viral social media engagement, with DOGE frequently trending on platforms like Twitter (X), Reddit, and TikTok. The currency has been at the centre of many internet-driven activities, including Reddit’s r/WallStreetBets campaign in 2021, where retail investors pushed DOGE to an all-time high.
Unlike most meme coins that fade over time, DOGE has sustained its cultural relevance, thanks to its strong community and real-world use cases.
DOGE as a tipping currency
Since its early days, DOGE has been widely used for tipping content creators, artists, and social media users. Platforms like Reddit, Twitter (X), and Twitch have integrated DOGE tipping bots, allowing users to reward others with small amounts of DOGE.
This tipping culture perfectly aligns with DOGE’s meme-driven and community-focused ethos, reinforcing its identity as a fun and generous cryptocurrency.
DOGE has one of the most passionate and dedicated crypto communities: the “Doge Army”. Unlike many crypto projects that rely on corporate backing, its growth has been entirely grassroots, fuelled by online communities and the meme culture. Major online forums like Reddit’s r/Dogecoin have played a crucial role in spreading adoption and organising community initiatives.
Pudgy Penguins and DOGE may have taken vastly different routes to success but at their core, both projects owe their longevity to strong community support.
In terms of community-driven growth, both Pudgy Penguins and DOGE have benefited from organic, grassroots support rather than relying solely on corporate backing or institutional investment. In the area of social media and viral marketing, both projects have effectively used social media, memes, and storytelling to maintain relevance and attract new supporters. Where real-world adoption is concerned, whether through merchandising (Pudgy Penguins) or payment adoption (DOGE), both projects have successfully expanded beyond the speculative nature of Web3.
Ultimately, community engagement, cultural relevance, and real-world application are the key ingredients for long-term success in the Web3 space. Pudgy Penguins and Dogecoin, despite their differences, both demonstrate that a passionate community can turn a digital asset into a movement that lasts.
Chan Wei Xiang, CA (Singapore), is Co-Founder, Web3 Accountant.
© 2024 Institute of Singapore Chartered Accountants
