Manchester City Forced to Intervene as Pudgy Penguins NFT Sparks India Backlash Over Racist Remark
- What Sparked the Controversy?
- How Did Manchester City Respond?
- Did the Backlash Affect PENGU Token’s Price?
- Why Does Pudgy Penguins’ Branding Feel Contradictory?
- What’s Next for Pudgy Penguins?
- Frequently Asked Questions
Barely a week into their high-profile partnership, Manchester City found themselves embroiled in controversy after Pudgy Penguins, an NFT project, made a racially charged comment about India on social media. The backlash was swift, with the football club stepping in to demand an apology. Meanwhile, Pudgy Penguins' token PENGU took a 3.7% hit amid the fallout, raising questions about the brand's alignment with its family-friendly image. Here's the full breakdown of the drama.
What Sparked the Controversy?
Pudgy Penguins, an NFT project known for its cute penguin-themed collectibles, posted a now-deleted tweet on X (formerly Twitter) that suggested a platform-wide crackdown on spam and AI-generated content could "actually have a significant effect on India’s economy." The implication—that Indians dominate low-quality engagement farming—drew immediate backlash, with critics calling it xenophobic and colonial in tone.
Dan Sickles, director of the NFT documentary project, didn’t hold back: "Pudgy Penguins is trafficking in base, xenophobic, colonial humor," he tweeted, pointing out the irony that their own American marketing team runs similar engagement campaigns. "I’ve met their guy—he’s great at his job, and he’s not from Mumbai," Sickles added, taking a jab at the project’s social media manager.
How Did Manchester City Respond?
The Premier League champions, who had just announced a commercial partnership with Pudgy Penguins on January 15, 2026, were quick to act. After Offline Protocol developer Satvik flagged the post to the club, Manchester City pressured the NFT project to issue an apology. In an email shared by Satvik, the club stated:
"We have raised this directly with the company, and they have since acknowledged that the tweet was inappropriate and removed it. They’ve offered to reach out to you directly to apologize."
Satvik, however, wasn’t satisfied. "I’m tired of how normalized racism against Indians has become on this platform," he said, demanding clearer policies from Pudgy Penguins to prevent future incidents.
Did the Backlash Affect PENGU Token’s Price?
Absolutely. After an initial 5% surge following the Manchester City partnership announcement, PENGU dropped 3.7% in 24 hours amid the controversy. Data from CoinMarketCap shows the token now trading below $0.01, down 20% weekly. Traders cited fading speculative interest and the PR disaster as key factors.
| Event | PENGU Price Impact |
|---|---|
| Partnership announcement (Jan 15) | +5% |
| Backlash over racist tweet (Jan 16-17) | -3.7% (24h), -20% (weekly) |
Why Does Pudgy Penguins’ Branding Feel Contradictory?
While the project markets itself through plush toys and child-friendly imagery, its social media strategy leans heavily into edgy, finance-bro humor—a mismatch that’s drawing scrutiny. "Their online persona clashes with their ‘family-friendly’ label," noted a BTCC analyst. "It’s like a cartoon network hosting a crypto trading desk."
What’s Next for Pudgy Penguins?
CEO Luca Netz has yet to issue a public apology, leaving the community questioning the project’s accountability. With Manchester City likely reviewing the partnership, the NFT project faces a critical test of damage control. Will they clean up their act, or will this be another crypto drama forgotten in a week? Only time—and token charts—will tell.
Frequently Asked Questions
What did Pudgy Penguins tweet about India?
The NFT project suggested that X’s spam crackdown might hurt India’s economy, implying Indians dominate low-quality engagement farming—a remark widely condemned as racist.
How did Manchester City react?
The club intervened, forcing Pudgy Penguins to delete the tweet and apologize privately, though no public statement has been made by CEO Luca Netz.
Did the controversy affect PENGU’s price?
Yes. After an initial partnership-driven surge, the token fell 3.7% in 24 hours and 20% weekly amid the backlash, per CoinMarketCap data.
