Pudgy Penguins Price Crashes 20% Amid SEC Scrutiny, Recovery Uncertain
Pudgy Penguins (PENGU) has plummeted nearly 80% from its peak NEAR $0.04, with a 20% weekly drop pushing it below $0.0097. The decline follows reports that the SEC is investigating Shima Capital, a venture firm backing the memecoin. Internal documents reveal founder Yida Gao allegedly misled investors while claiming SEC compliance.
Historical trends suggest a December rebound is unlikely for memecoins, which rely heavily on retail participation. Trading volume typically dwindles during the holiday season, further dampening prospects for a near-term recovery.
Shima Capital's $200M portfolio includes high-profile projects like Berachain and Monad, but the SEC lawsuit has cast a shadow over its investments. Market observers note the absence of strong catalysts that could reverse PENGU's downward trajectory.
