CMC News

Pudgy Penguins Display Lights Up Las Vegas Sphere

The Pudgy Penguins project showcased its animated penguin characters on the Las #VegasSphere's exterior screens during Christmas week. The display went live on #ChristmasEve across the venue's high-resolution LED panels, which are visible along the Las Vegas Strip.

#PudgyPenguins launched as an #NFT project in 2021 and was acquired by entrepreneur Luca Netz in April 2022 for $2.5 million in $ETH. Netz then pivoted the business model beyond digital collectibles into physical toy production as NFT revenue declined across the market.

The company now generates millions in toy sales, though Netz acknowledged that margins remain thin in the consumer products space. What started as a strategy to extend the operating runway has become a core revenue stream, positioning the project to close 2025 with an estimated $50 million in total revenue.

Pudgy Penguins has built a social media presence of approximately 2 million followers on Instagram, where the company focuses its significant marketing efforts. The physical product expansion has helped insulate the project from broader NFT market weakness.

The NFT sector faced substantial headwinds throughout 2025, with first-quarter transaction volumes dropping 63% year-over-year to $1.5 billion from $4.1 billion in the same 2024 period. March sales plunged 76% to $373 million compared to $1.6 billion a year earlier, though select collections including Pudgy Penguins showed relative stability.

Total NFT market #capitalization reportedly fell to approximately $2.5 billion in December, marking the lowest level of 2025. Despite widespread declines, certain segments found traction during the year.

Real-world collectible-backed NFTs emerged as an area of strength, particularly trading cards linked to physical assets. Platform   Courtyard.io connects authenticated Pokémon cards to on-chain tokens that can be traded or redeemed for the underlying physical item.