FTX Token Surges 40% Before Pudgy Penguins’ PENGU Allocation News

Bankrupt crypto exchange's creditors gain exposure to red-hot NFT project in latest recovery effort

  • Pudgy Penguins allocates 0.35% of PENGU tokens to FTX‘s FTT token holders.
  • PENGU’s total supply is 88 billion tokens with 17.8% for team, 25.9% for NFT holders, and 12.35% for liquidity.
  • FTT price increased 40% before the announcement, raising insider trading concerns.
  • FTT holders will receive 308 million PENGU tokens.
  • FTT maintains $400 million daily trading volume despite being deemed worthless in bankruptcy proceedings.

Pudgy Penguins, a prominent NFT project, will distribute a portion of its new PENGU token to holders of FTX’s collapsed FTT token, according to an announcement on Friday. The move comes as FTX prepares to begin creditor repayments in March.

- Advertisement -

Token Distribution Details

The PENGU token launch includes a total supply of 88 billion tokens, distributed across multiple stakeholder groups:

  • 17.8% – Project team allocation
  • 25.9% – NFT holders
  • 12.35% – Liquidity provisions
  • 0.35% (308 million tokens) – FTT holders

Market Response and Controversy

The announcement triggered significant price movement in FTT, which experienced a 40% increase approximately 13 hours before the official PENGU announcement. Following the news, FTT rose an additional 7.7% to $3.75 before settling at $3.39.

Social media analyst @DarkCryptoLord raised concerns about potential insider trading, citing the pre-announcement price surge as suspicious market activity.

Despite a bankruptcy judge declaring FTT worthless, the token maintains substantial trading activity, with daily volumes reaching $400 million. This comes as FTX prepares to distribute $16.5 billion to affected customers and creditors, with specific repayment dates expected to be announced this month.

✅ Follow BITNEWSBOT on Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest News

ClickFix Attacks Surge 517% in 2025, Fake CAPTCHAs Spread Malware

ClickFix attacks using fake CAPTCHA verifications have risen by 517% in early 2025, according...

FHFA Orders Fannie, Freddie to Consider Crypto as Mortgage Collateral

The U.S. Federal Housing Finance Agency ordered Fannie Mae and Freddie Mac to consider...

Retail Investors Can Now Buy Tokenized Shares of SpaceX via Blockchain

Retail investors can now buy blockchain-based fractional shares in SpaceX through Republic. These digital tokens...

EU Commission Eases Stablecoin Stance, Calms Bank Run Concerns

The European Commission downplayed the risk of bank runs linked to stablecoins after concerns...

Iranian Hackers Launch AI-Driven Phishing Attacks on Israelis

An Iranian state-backed Hacking group targeted Israeli journalists, Cybersecurity professionals, and academics in a...

Must Read

Forex Trading Vs Crypto Trading: Which One Should You Choose?

So you're trying to decide between two types of trading: Forex and cryptocurrency.Forex trading is the big player in the trading world, with lots...