NFT: Pudgy Party Shuts Down Less Than a Year After Launch

There was a time when the metaverse and NFTs made investors dream of a new digital frontier. Blockchain promised to revolutionize video games and virtual ownership. Yet this enchanting universe has often turned into financial rollercoasters. The downturns outnumber the upswings. Today, Pudgy Party, a very promising mobile game, abruptly closes its doors after just a few months of existence.

A mobile venture that cost millions without winning hearts

Launched in August 2025 with extensive advertising, Pudgy Party had all the ingredients to succeed. This battle royale game, developed with Mythical Games and associated with PENGU, quickly reached first place on the App Store. It surpassed one million downloads and was even crowned “Game of the Year” by Decrypt’s GG. Yet behind these numbers, the reality is much darker.

According to notes from an internal meeting reported by chefjames.eth, the game had only 200 to 300 active players at the end of its life. Losses were already in the millions of dollars. Continuing the adventure would have required an additional investment of 2.5 million. CEO Luca Netz admitted he was “super ambitious” and fully embraces this difficult decision.

“I was super ambitious and thought it was one of the best Web3 games built” he said during the community meeting on June 14 (Source: chefjames.eth, X). 

The team tried to save the project by injecting nearly one million dollars more, but without success.

Pudgy World, the new life of the NFT brand

The closure of Pudgy Party is not a simple abandonment. It is part of a much broader vision for the Pudgy Penguins project. The brand no longer wants to be just an NFT collection. 

It is building a true mainstream ecosystem with physical toys sold at Walmart and Target. Partnerships with Visa and Manchester City demonstrate this voracious ambition.

Pudgy World is now the gaming showcase of this strategy. This browser game, free and requiring no download, aims to attract a massive audience. Its creators carefully hid blockchain elements so as not to scare off newcomers. With 15,000 to 20,000 daily users, the game already seems to find its audience. 

Pudgy World continues to grow rapidly and offers one of the most fun and innovative web experiences.  Source: @PlayPudgyParty

The game offers 12 cities, narrative quests, and mini-games in a universe called “The Berg.” It is a bold attempt to go from a crypto niche to a global entertainment brand. However, this strategic pivot has a human cost.

Crypto community fumes as trust takes a hit

The community is still angry. Players invested time and money in Pudgy Party. Today, they demand accountability. The lack of clear compensation or transfer of items to Pudgy World fuels the anger. 

“Imagine if you were one of those people who bought a Power Pudgy skin for $5,000… ” wonders a user on X (Source: Sasquatch, @sas0xatch).

Another bitterly deplores: “You ignored our feedback again and again and now you are shutting everything down. Shame. ” (Source: Foxie1, @Macieyo193416). 

The loss of trust could tarnish the brand image in the long term.

However, the PENGU token rose more than 10% after the announcement, indicating that investors support the strategic pivot. Players, however, are left on the sidelines.

Key figures of the closure

• 1 million downloads for Pudgy Party;
• Only 200 to 300 active players at the end;
• Several million dollars in losses already recorded;
• 15,000 to 20,000 daily users for Pudgy World;
• PENGU price: currently 0.007207 dollars.

The crypto gaming industry is going through a difficult period, but NFTs are not completely abandoned. The new SEC chairman, Paul Atkins, recently clarified their legal status in the United States. This change opens up more serene prospects for projects wishing to innovate without fearing regulatory backlash.