Pudgy Penguins-backed Abstract to shut down after ‘tens of millions’ in losses
Igloo CEO Luca Netz said the company funded Abstract for 18 months but still failed to find product-market fit despite attracting major brands and a community of millions.
Igloo Inc., the parent company of Abstract, an Ethereum layer-2 blockchain network built by Pudgy Penguins, announced its plans to shut down Abstract this year after struggling to achieve product-market fit and facing financial losses. Abstract's focus on consumer crypto eventually proved unsustainable, despite attracting major brands and a community of millions.
CEO Luca Netz disclosed that the company had funded Abstract for 18 months, losing tens of millions of dollars in the process. The network, which launched its mainnet in January 2025, aimed to simplify crypto adoption for mainstream entertainment users. However, minimal institutional crossover, thin liquidity, and a restricted DeFi ecosystem hindered its growth.
Abstract's shutdown affects users with funds on the network, who must migrate their assets off the chain by Dec. 15, 2026, or risk losing access to them. The network's engineering and ecosystem team will assist projects in migrating to other chains.
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