SEC Lawsuit Triggers Sharp Drop
The price of Pudgy Penguins (PENGU) has taken a significant hit, dropping by 20% in just one week. This decline is part of a larger downward trend, with PENGU now down nearly 80% from its peak near $0.04.
The recent crash follows news that the U.S. Securities and Exchange Commission (SEC) is targeting venture capital firms invested in Pudgy Penguins. The SEC has sued Shima Capital and its founder, Yida Gao, alleging investor fraud. Internal emails reveal that Gao plans to step down and wind down the fund. Shima Capital manages approximately $200 million in assets and has investments in several high‑profile projects, including Berachain, Monad, and Pudgy Penguins.
Price Reaction and Current Outlook
Following the news, PENGU’s price dropped to under $0.0097 before seeing a slight rebound. However, the future looks uncertain for the memecoin.
Historical December Weakness
Historically, December has not been kind to memecoins. Retail investors, who are the primary drivers of memecoin prices, tend to reduce their activity during the holiday season, leading to lower trading volumes. PENGU has already seen a 66% decline over the past 2.5 months and may continue to fall if it fails to hold the key support level at $0.093.
For a potential recovery, PENGU would need to break above $0.013 to confirm a bullish rally. But with memecoin interest at a five‑year low, waiting for better market conditions might be the best strategy.
Shift Toward Projects With Real Utility
Amidst the memecoin struggles, projects with real utility are gaining attention. Bitcoin Hyper ($HYPER) is one such project. It is a new Bitcoin Layer 2 solution that uses Solana‑style technology to offer fast transactions, low fees, and full DeFi functionality for BTC holders.
The project has already raised nearly $29.5 million from early investors and offers staking yields of around 39 % APY during its early phase.
As memecoins face challenges and retail interest wanes, capital is shifting towards projects with practical applications. Bitcoin Hyper is positioning itself as a promising alternative, offering enhanced functionality for Bitcoin users.
