Pudgy Penguins Parent Igloo Shuts Down Abstract Ethereum Layer 2

Igloo Inc., the parent company of Pudgy Penguins, has announced the shutdown of Abstract, its Ethereum Layer 2 network, effective December 15. Users with remaining funds on the chain by that date will lose access, according to the project’s October 6 announcement. Abstract, which aimed to onboard everyday users through apps, games, and brand collaborations, attracted over 400,000 users and partnered with major brands like Red Bull Racing and Disney.

The network launched in January 2025 as a consumer-focused blockchain, but Igloo cited stagnant growth due to a restricted DeFi ecosystem, thin liquidity, minimal institutional interest, and budget constraints compared to competitors. Despite deploying over 144 unique apps and creating the Abstract Global Wallet, the team concluded that sustaining a consumer-focused chain was unsustainable.

Users are urged to migrate their assets via the Migration Hub at migrate.abs.xyz or the native bridge at native-bridge.abs.xyz, which has a three-hour delay. The team warned against phishing scams, advising users to verify links through official channels before connecting wallets. The engineering team will assist projects in migrating to other chains.

The shutdown follows Blast’s announcement to close its Ethereum Layer 2 by October 26, marking the second Ethereum scaling network to cease operations in a week. Abstract had initially shown promise with 105,000 active addresses shortly after launch, but failed to build a self-sustaining economy.