How Safe Is PENGU Token On Solana?

How Safe Is PENGU Token On Solana
The Pudgy Penguins community has always been about joy and creativity, but how does their token, PENGU, hold up under scrutiny? We took a deep dive into its features, risk factors, and overall safety. Here’s everything you need to know before jumping into this chilly investment.

How Safe Is PENGU Token On Solana

PENGU Token: The Basics

Let’s start with the key details:

Attribute

Details

Blockchain

Solana

Token Name

Pudgy Penguins

Symbol

PENGU

Total Supply

~89 Billion (88,888,838,170.690375)

Decimals

6

Token Type

SPL Token

Contract Address

2zMMhcVQEXDtdE6vsFS7S7D5oUodfJHE8vd1gnBouauv

Liquidity

$19.08 Million across Raydium and Meteora pools

Daily Volume

$127.83 Million

Website

pudgypenguins.com

Social Media

x.com/pudgypenguins

Risk Analysis: How Secure Is PENGU?

When investing in a token, you want to know if it’s safe. Let’s break down the risk factors for PENGU:

1. Open Source

✅ Yes, PENGU is open source.

This allows developers and the community to review the code. Transparency is always a plus.

2. Minting Capability

✅ No minting capability detected.

No additional tokens can be created, which protects against inflation and manipulation.

3. Metadata Security

✅ Metadata is immutable.

This ensures no changes can be made to the token’s core attributes, giving investors peace of mind.

4. Freeze Authority

✅ Freeze authority has been revoked.

This means transactions can’t be arbitrarily halted. You’re in full control of your assets.

5. Liquidity Pool Burn

⚠️ No LP tokens have been burned.

Burning liquidity pool (LP) tokens prevents developers from draining liquidity. In this case, the lack of burn introduces some risks.

6. Top Holders

✅ Top 10 holders own 0%.

This is a good sign. Ownership is well-distributed, reducing the risk of market manipulation by whales.

Liquidity Pool Analysis: Where PENGU Trades

PENGU operates across two major liquidity pools:

1. Raydium Pool (SOL-PENGU)

  • Liquidity: $15.27 Million
  • 24-Hour Volume: $95.44 Million
  • Create Date: December 17, 2024
  • LP Burn: None

2. Meteora Pool (PENGU-USDC)

  • Liquidity: $3.81 Million
  • 24-Hour Volume: $32.39 Million
  • Create Date: December 17, 2024
  • LP Burn: None

What does this mean?
The liquidity is decent, with a combined $19.08 million. However, the absence of LP burns in both pools raises concerns about potential rug pulls.

Strengths of PENGU

1. Strong Daily Volume
With over $127 million in 24-hour trading volume, PENGU has significant activity. This high liquidity ensures smooth transactions and price stability.


2. Decentralized Ownership
No single holder controls the token. This reduces risks of price manipulation or sudden sell-offs.


3. Transparent Code and Features
Open-source code, immutable metadata, and no minting capabilities make PENGU technically sound.

Red Flags to Consider

1. No LP Burn
Neither liquidity pool has burned its LP tokens. This means the token’s creators retain the ability to withdraw funds, a key factor in many rug pull scams.


2. Lack of Unique Features
While technically secure, PENGU doesn’t stand out in terms of innovation. It’s a standard SPL token without groundbreaking features.


3. Early Stage
Both pools were created on December 17, 2024. While this doesn’t inherently mean the token is unsafe, new projects often carry more risk due to limited track records.

Safety Rating for PENGU

After analyzing all factors, here’s how PENGU scores:

Criteria

Status

Open Source

✅ Secured

Minting Capability

✅ Secured

Metadata Security

✅ Secured

Freeze Authority

✅ Secured

Liquidity Pool Burn

⚠️ Not Burned

Top Holder Risks

✅ No Risks

Final Score: 7.4/10

Risk Level: Medium
Interact with PENGU only if you understand the risks.

Should You Invest in PENGU?

Let’s face it: Pudgy Penguins has a strong community backing. PENGU’s liquidity is decent, and the technical aspects are solid. However, the lack of LP burns and its early-stage nature mean you should trade carefully.

Here’s our advice:

  • Do your research.
  • Don’t invest more than you can afford to lose.
  • Monitor liquidity movements closely.

If you’re a fan of Pudgy Penguins and believe in the project, this token could be a fun addition to your portfolio. Just make sure you’re aware of the risks.

That’s a Wrap

PENGU isn’t perfect, but it’s not a disaster either. Its secure code and active trading volume make it appealing, but the LP burn issue is a significant drawback.

Are you ready to join the Pudgy Penguins ecosystem, or are you holding back? Let us know in the comments below and if you are looking for a full detailed report of this token contact us here.

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Disclaimer: The information found on Blockospot is for educational purposes only. It does not represent the opinions of Blockospot on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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