Luca Netz Acquires Pudgy Penguins NFT Project, Breathing New Life into Community-Driven Digital Assets

Luca Schnetzler, commonly known as Luca Netz, acquired the Pudgy Penguins project in April 2022 for 750 ETH, valued at approximately $2.5 million at the time of purchase. Originally launched in July 2021, Pudgy Penguins is an Ethereum-based NFT initiative.

The project faced significant turmoil at the end of 2021 and early 2022, as initial founders were accused of misappropriating funds allocated for development. This controversy caused the floor price of Pudgy Penguins NFTs to plummet to below 1 ETH.

Upon the announcement of Luca Netz’s acquisition, the floor price surged to 3.15 ETH. By May of last year, the floor price had climbed to 11 ETH, with some rare NFTs reaching transactions as high as 400 ETH.

# Community-Driven Projects

NFT projects like Pudgy Penguins thrive on the trust and engagement of their communities. The act of buying and selling jpgs on the blockchain hinges on this trust. When an NFT project loses the trust of its community, recovering its value becomes an arduous task.

Netz took a calculated risk in acquiring Pudgy Penguins but revitalized the project by introducing physical merchandise, such as plush toys, to major U.S. retailers like Walmart and Target. This move, coupled with plans for a proprietary Layer 2 solution named Abstract and a native token, significantly bolstered the project’s standing.

During KBW, Luca Netz visited Korea, where he discussed the project and his vision in an exclusive interview.

# Q&A with Luca Netz

## Q: Can you briefly introduce yourself and Pudgy Penguins?

I’m Luca Netz, CEO of Pudgy Penguins, a project I acquired two years ago with the ambition of making it the largest penguin brand globally and ultimately the mascot of cryptocurrency worldwide. I dropped out of high school at 16 and entered the tech space, becoming a self-made millionaire by 18. I’ve built brands with high-profile celebrities and created Gelblaster, one of North America’s fastest-growing toy companies. Two and a half years ago, I took on Pudgy Penguins full-time.

## Q: Why did Pudgy Penguins partner with Uniswap in early September?

Both Uniswap and Pudgy Penguins value each other’s work. Our mission is to be the face of cryptocurrency globally, and we have a strong connection with Uniswap. You’ll find Pudgy Penguin toys in their office and vice versa. It’s a great partnership, with about one-third of Uniswap employees holding Pudgy Penguins NFTs.

Editor’s Note: The collaboration primarily focuses on branding and marketing, with no announcements of technical integration or new product releases to date. Uniswap is a leading DeFi platform on Ethereum.

## Q: How does Pudgy Penguins plan to survive in what seems like a stagnant NFT market?

Pudgy Penguins has been one of the few NFT projects to show consistent performance over the past two and a half years. Despite the market downturn, our upward momentum and steady market cap differentiate us from other projects. We aim to build a brand that everyone wants to be a part of when the market rebounds.

## Q: Can you explain the difference between Pudgy Penguins and Lil Pudgy Penguins?

Big Pudgies are limited to 8,888 NFTs, making them rarer and more valuable. Holders receive various rewards, such as airdrops, event access, and licensing opportunities. Lil Pudgies, with 22,222 NFTs, offer a more accessible entry point for enthusiasts. Although less rare, they still provide a way to join the community.

# Expanding the Brand in Korea

## Q: Any plans to make Pudgy Penguins merchandise more accessible in Korea?

We plan to open a pop-up store in Korea next year and are partnering with Lotte to develop products slated for release in 2025. Pudgy Penguins will be showcased in Lotte’s theme parks, zoos, and aquariums, solidifying our brand presence in Korea.

## Q: What is Abstract, and do you plan to list its native token, ARCD, on Korean exchanges?

Abstract is a Layer 2 solution supporting all Pudgy Penguins products, focusing on consumer use cases. We are in talks with various exchanges but must comply with Korean regulations. I’m excited about the crypto culture in Korea and look forward to building strong partnerships here.

## Q: Why have builders and not just general consumers been drawn to Pudgy Penguins NFTs as their PFP?

Pudgy Penguins resonate with a broad audience, from kids to adults, unlike any other NFT brand. This universal appeal has made builders and other community members proud to adopt Pudgy Penguins as their profile pictures.

## Q: Why haven’t other NFT projects achieved the same level of success as Pudgy Penguins?

While some projects have succeeded, none have achieved the universal appeal that Pudgy Penguins have. For example, Bored Apes require you to ‘feel cool,’ but Pudgy Penguins offer versatility in portrayal, appealing to a much broader audience.

## Q: How do you plan to appeal to Korean culture, which favors cute characters like those from Kakao or Line?

Pudgy Penguins focus on being the first groundbreaking IP in crypto with a “cuteness” appeal that resonates well with Korean and broader Asian markets. We are committed to this endeavor through our efforts with Pudgy Penguins and Abstract.

## Q: What are your thoughts on the future of Ethereum?

Ethereum is the king. Despite fluctuating prices, I believe it will be strong in the long run.