Bitwave, a platform that offers accounting services for enterprise-level digital assets, has announced a partnership with Pudgy Penguins, an NFT collection project inspired by rare penguins. The goal of the collaboration is to simplify the accounting required to move NFTs between different wallets and exchanges. According to a media release, the Pudgy Penguins made the move out of need for a robust tracking solution in order to comprehend their financial situation.
Why Pudgy Penguins chose Bitwave
Pudgy Penguins features 8,888 unique digital penguins minted as NFTs, with ownership evidence stored on the Ethereum blockchain. With a total trading volume of over 150 ETH or about $287 million and a floor price of more than 4 ETH or about $7,600, the collection has established itself as one of the most sought-after PFP (Profile Picture) projects on the NFT market.
The Pudgy Penguins are described as an embodiment of love, empathy, and compassion for all. Each holder gets the special opportunity to attend exclusive events, IP licensing, and more. Bitwave, on the other hand, was developed specifically to address issues related to taxes, accounting, and compliance in the Web 3 industry.
Both the Pudgy Penguins and Bitwave teams used a two-pronged strategy to overcome the problem. Using Bitwave’s integrated reporting platform, the two companies started by performing a comprehensive audit of the on-chain transaction record from NFT sales over the preceding 21 months. This made it possible for Pudgy Penguins to accurately keep tabs on, classify, and publish the historical cost basis of every single transaction, in every single wallet, in every market.
Next, the Pudgy Penguins and Bitwave teams collaborated to develop an automated rule set that exposed all primary and secondary market trades. With the use of these classifications, Pudgy Penguins was able to automate their revenue accounting and start keeping track of their cost basis for new NFT deals almost immediately.