Last Updated on July 3, 2025 by Olga Davis
Key Takeways
- Pudgy Penguins is a top NFT brand with toys in Walmart and a growing Web3 ecosystem.
- PENGU Coin powers Pudgy World as in-game currency, rewards, and loan collateral.
- Hold NFTs (Penguins, Lil Pudgys, toys) to earn PENGU via airdrops and gameplay.
- You can also get a crypto loan by locking PENGU as collateral, and access cash without selling.

What Are Pudgy Penguins?
Pudgy Penguins is a leading NFT collection launched in 2021, consisting of 8,888 unique penguin-themed characters on the Ethereum blockchain.
Since acquisition by Luca Netz, Pudgy Penguins has expanded from NFTs into a full-scale brand, including:
- Pudgy Toys sold in Walmart and Amazon
- Soulbound NFTs linked to physical toys
- Pudgy World — a browser-based digital playground built on zkSync
- PENGU Coin — a native utility token powering the Pudgy ecosystem
This positions Pudgy Penguins as one of the few NFT projects with real-world product distribution, Web3 infrastructure, and native tokenomics.
What Is PENGU Coin?
PENGU is the upcoming utility token of Pudgy World. It will serve as:
- In-game currency for cosmetic items, emotes, and upgrades
- Reward token for participation and content creation
- Governance tool (future roadmap)
It is designed to drive activity inside Pudgy World and create value for holders and contributors.

How to Profit from Pudgy Penguins and PENGU Coin
1. Hold Pudgy NFTs (Penguins, Lil Pudgys, Toys)
Early access and airdrops of PENGU are expected to reward holders of:
- Pudgy Penguins
- Lil Pudgys
- Soulbound NFTs from physical toys
Alpha: Holding core NFTs may yield passive PENGU as a loyalty or play-to-earn reward.
2. Use PENGU Inside Pudgy World
Once PENGU launches, users can:
- Buy rare cosmetics
- Craft or trade in-game assets
- Earn rewards for exploring, creating, or socializing
This mirrors successful models like Fortnite skins or Roblox currency — but powered by crypto.
3. Get a Crypto Loan Using PENGU
This is the most overlooked but powerful profit mechanism for Pudgy Penguins holders — especially those who plan to stay long on PENGU. Instead of selling your PENGU Coin to access funds, you can borrow against it. This allows you to unlock instant liquidity without giving up exposure to future price growth.
Why Take a Pudgy Penguins Loan?
✅ Keep Exposure to Long-Term Growth
If you believe PENGU is undervalued or has long-term upside, selling it for short-term needs is counterproductive. Borrowing lets you access stablecoins (like USDT or USDC) without exiting your position.
✅ Avoid Capital Gains Tax
In many jurisdictions, borrowing crypto does not trigger a taxable event — unlike selling. This means you keep your tax liability low while still unlocking liquidity.
✅ Fast Access to Funds
Most crypto lending platforms require zero paperwork. Your tokens are your credit score. You get funds in minutes, 24/7, no bank required.
✅ Protect the Market Price
When whales sell large amounts of PENGU, it creates downward pressure. Loans keep supply locked, helping support price stability.
Step-by-Step: How to Get a Pudgy Penguins Loan

Select Pudgy Penguins & Loan Amount
- Choose how much PENGU you want to lock
- Select the desired loan amount in USDT, USDC, or similar
- The system will auto-calculate LTV ratio (50–90% on CoinRabbit)
Example: You lock $1,000 worth of PENGU and borrow $500 USDC at 50% LTV.

Review the Terms
- Interest rate (fixed or variable, e.g., ~17% APR)
- Loan term (30/60/90/unlimited days)

Deposit Your PENGU
You’ll send your PENGU to the protocol’s smart contract or custody address. Make sure you verify the contract and avoid phishing links.
Receive Funds Instantly
After confirmation, your loan is issued. USDC/USDT will be sent directly to your crypto wallet — within 5–10 minutes.
Repaying Your Pudgy Penguins Loan
- At any time, you can repay the principal + interest.
- Once paid, your entire PENGU is unlocked and returned.
- No penalties for early repayment.
This means you get your PENGU back untouched — having used it to access liquidity without selling.