The Pudgy Penguins non-fungible token (NFT) project is discontinuing its Pudgy Party mobile game and pausing further development.
In post X team he said on Saturday said it would shift its gaming resources toward Pudgy World, a browser-based game it billed as the flagship gaming product in the Pudgy Penguins ecosystem.
“We have made the difficult decision to close Pudgy Party and pause further development,” the team wrote, adding that Pudgy World offers greater potential for scalability and introducing novel users to the Pudgy Penguins brand.
The mobile game was released in August 2025 and has surpassed 500,000 downloads on Google Play alone. Pudgy Party stated that the total number of downloads exceeded 1 million.
Pudgy Penguins is consolidating its gaming ambitions around one flagship product as the project expands beyond NFTs through initiatives spanning toys, games, licensing and entertainment.
The total market capitalization of NFTs rose to nearly $1.5 billion on Monday from more than $1.3 billion on Friday. According to to CoinGecko, but remains well below its 2022 peak of over $17 billion.
7-day NFT market cap data. Source: CoinGecko
Crypto games are struggling to find sustainable business models
The end of Pudgy Party comes as another Web3 gaming project, Fishing Frenzy, and its developer, Uncharted, announced they would cease operations after failing to establish a viable crypto gaming model.
“Despite our best efforts, we were ultimately unable to prove our crypto gaming thesis and were unable to find product-market and business fit,” Fishing Frenzy said in an X post on Monday.
The team said the company had spent the last year testing approaches and different audiences, but had not found a path that would inspire confidence in continuing.
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Fishing Frenzy will be shutting down its servers on June 25 at 2:00 UTC. The project has stopped selling USDC bundles and made its FISH token a spend-only item and non-tradable.
The team stated that USDC remaining in the FISH/USDC liquidity pool will be distributed to community members and shareholders.
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