Indians criticise Pudgy Penguins over deleted post amid wider crypto scrutiny

Indian social media users have criticised NFT brand Pudgy Penguins after a now-deleted post on X appeared to single out India in response to platform policy changes.

The backlash followed an announcement by X product head Nikita Bier that the platform would ban applications rewarding users for posts to curb AI-generated spam and low-quality content.

The policy shift affects crypto-related engagement farming practices, including reward systems known as “yaps” used on platforms such as Kaito.

Reacting to the update, the Pudgy Penguins account posted:

“This change might actually have a significant effect on India’s economy.”

While some users identifying as Indian said they viewed the comment as a joke, others described it as offensive and accused the project of reinforcing racist stereotypes.

Criticism intensified after a response from the account manager suggested the post was aimed at “farming yaps,” further angering users.

Several commentators said the controversy highlighted poor judgement from a brand that promotes itself as family-friendly.

Pudgy Penguins later removed the post from X but has not issued a public explanation for the incident.

The company did not respond to requests for comment at the time of publication.

At the time of reporting, Ethereum price was $3,190.67.