PENGU team dumps tokens worth $66 million while scammers flood ecosystem

Large volumes of Pudgy Penguin’s PENGU tokens are flowing from the project’s deployment address to centralized exchanges (CEXs), raising questions amid a strong market rally.

On July 28, blockchain analyst EmberCN, citing Arkham Intelligence data, reported that more than 206.9 million PENGU tokens, valued at approximately $8.91 million, were transferred to various CEXs within the past 24 hours.

He said this is part of a broader transfer pattern observed from the project’s team during the past month.

EmberCN pointed out that the PENGU team has transferred over 2 billion tokens, valued at around $66.6 million, to CEXs during the past month.

Token transfers to exchanges are commonly seen as a sign that holders might be preparing to sell. As a result, the recent PENGU team movements could be viewed as a potential step toward liquidation.

This surge in token movements coincides with a notable price increase. According to CryptoSlate’s market data, PENGU is trading at $0.04278 at the time of writing. The token has climbed 3.3% over the past day, gained over 17% in the past week, and jumped roughly 230% over the last month.

PENGU scam warnings

Meanwhile, the PENGU token rally appears to have drawn attention from scammers who have initiated a new wave of phishing scams targeting the NFT project token holders.

On July 27, Beau, the security expert at Pudgy Penguin, explained that the new scam involves sending small amounts of PENGU tokens, known as “dust,” to random wallets. These tokens use vanity address names that double as fake website URLs.

The security chief pointed out that this scam is designed to manipulate users into searching for these vanity names via Solscan.

From there, victims may unknowingly click phishing links that mimic Pudgy Penguins’ branding. If users connect their wallets, they are prompted to sign malicious transactions that drain their assets.

Beau clarified that no legitimate PENGU airdrop or claim is currently active.

He also highlighted another scam involving counterfeit PENGU tokens engineered to act as honeypots. These fake tokens can trap users during swaps and steal their funds.

These events reflect the growing sophistication of crypto scams, especially during market rallies. As PENGU gains momentum, users are urged to stay alert, verify token sources, and avoid interacting with unsolicited airdrops.

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