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.
Abstract, a consumer-focused Ethereum layer-2 blockchain backed by Pudgy Penguin’s parent company Igloo Inc., said Tuesday it will be shutting down this year after struggling to scale and find a product-market fit.
In an X post, Abstract said its focus on “consumer crypto” ultimately proved to be an unsustainable business model. Abstract launched its mainnet in January 2025, aimed at driving consumer crypto adoption by targeting mainstream entertainment. For users, it aimed at stripping away many of the complexities that traditional blockchains require.
“Unknown to most, Igloo, Inc. had been funding Abstract over the last 18 months,” said Luca Netz, CEO of Igloo Inc. “After losing tens of millions of dollars over two years, building consumer products, assembling an all-star team, onboarding some of the biggest brands in the world, and building a community of millions, we still had not found product-market fit.”
Abstract’s shutdown highlights the limits of its consumer-first strategy. Both Abstract and Netz cited minimal institutional crossover, alongside thin liquidity and a restricted DeFi ecosystem, as constraints on growth.
Abstract said users with funds on the network should begin to bridge their assets off the chain, which will shut down on Dec. 15, 2026.
This can be done through Migration Hub, or through the Native Bridge. Any funds not bridged by the date will be inaccessible.
Abstract said its engineering and ecosystem team will also be working with Abstract-based projects to migrate to different chains.