Pudgy Penguins Under Fire for Racist Post on X

Pudgy Penguins is preparing to apologise for a racist post published on X last week after the NFT brand’s football partner, Manchester City, formally raised concerns. The post, which has since been deleted, triggered backlash across crypto and NFT communities and raised questions about brand governance at one of the industry’s most visible consumer-facing projects.

According to screenshots shared online, Manchester City contacted Pudgy Penguins after the project suggested that X’s crackdown on reply spam and “AI slop” might “actually have a significant effect on India’s economy.” The comment followed an announcement by X product head Nikita Bier that the platform would prohibit applications from rewarding users for posts, a category often referred to as “infofi,” due to the spread of AI-generated spam and low-quality engagement.

The tweet appeared to rely on a xenophobic stereotype that associates Indian users with bot networks and spam activity. While some users initially attempted to downplay the remark, criticism intensified after the Pudgy Penguins account responded in a dismissive tone.

Manchester City intervention prompts response

Following the complaint, Pudgy Penguins acknowledged “that the tweet was inappropriate and does not reflect its company values.” The project’s press office said it planned to contact the X user who flagged the post and “express their apology on the matter.” It also confirmed that the post had been removed from its channels.

At the time of writing, Pudgy Penguins and its CEO, Lucas Netz, had not issued a public apology on their own social media accounts. Protos said it had reached out to Pudgy Penguins for comment and would update its reporting if a response was received.

The incident placed added pressure on Pudgy Penguins due to its partnership with Manchester City, which reportedly values $5.3 billion. The collaboration forms part of Pudgy Penguins’ broader effort to expand beyond crypto-native audiences and position itself as a mainstream consumer brand.

Community backlash escalates

The X user who reported the post to Manchester City, known as “Satvik,” criticized the project after other users attempted to dismiss the comment. Satvik said Pudgy Penguins CEO Lucas Netz should be “incredibly ashamed” of his team for allowing the post to go live.

The account later added,

“I’m fucking tired of how normalized racism against Indians has become on this platform, every single day we endure hurtful comments for simply existing online.”

Crypto founder Dan Sickles also amplified the controversy after screenshotting the post. He later said that he wanted clarity on what company policies Netz would enact “to prevent incidents like this from happening again, and for him to condemn xenophobia and racism more generally.”

Immediately after the post drew criticism, the Pudgy Penguins account published a smug response and claimed that the tweet was intended for “farming yaps,” a term used to describe gaming social media engagement for profit. That response further inflamed criticism and reinforced accusations of poor judgment.

Brand tension with family-friendly image

Pudgy Penguins originated as a collection of cartoon penguin NFTs but has since expanded into children’s books, mobile games, designer collectibles, and football-related partnerships. The strategy aims to attract audiences outside of crypto and position the brand as accessible and family-friendly.

Critics noted that the tone of the post clashed with that image. Several commenters argued that even aside from accusations of racism, the incident reflected a disconnect between the project’s marketing ambitions and its social media conduct.

This was not the first time Pudgy Penguins faced scrutiny over messaging. Its posts often target trending themes in finance and technology rather than aligning with the tone expected from a brand associated with children and mass-market consumers.

Broader debate over crypto brand accountability

The controversy echoes earlier criticism faced by other crypto platforms accused of racially charged messaging. A recent example involved Polymarket, which also faced backlash over a racist post in November 2025.

For Pudgy Penguins, the incident arrives at a time when crypto-native brands increasingly seek partnerships with global corporations. Such relationships often place stricter expectations on conduct, risk management, and public communication.

While Pudgy Penguins said it would apologise privately to the user who flagged the tweet, observers continued to call for a public response and clearer internal safeguards. Without a direct statement from Netz or the company’s leadership, questions remain about how the project plans to prevent similar incidents.

As crypto brands attempt to cross into mainstream culture, the episode highlights the growing consequences of social media missteps and the limits of irony-driven engagement strategies.

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