In the morning, everyone was saying that $pengu had started selling. I checked, and on-chain it indeed shows that the Pudgy Penguins deployment address is continuously transferring tokens to multiple CEX addresses. This week alone, over 45M has been transferred out, with the timing chosen at the peak of sentiment.

I also saw someone post an official response, saying that they are providing LP or locking up tokens, which doesn't necessarily mean selling.

It sounds reasonable, but the problem is: while the blockchain is transparent, the information is not.

The crypto world has never been a place of reason; it is a place of expectations.

Lack of transparency = uncertainty, uncertainty = risk, risk = selling.

Short-term selling pressure + FUD spreads quickly, and even if you haven't sold, you can't stop the market from voting with its feet. I, for one, am leaving first; I’ll accept missing out later.