Pudgy Penguins Shuts Down Abstract Ethereum Layer-2 Network
Igloo, the company behind the popular Pudgy Penguins NFT brand, has announced the shutdown of its Ethereum layer-2 network, Abstract, effective December 15. The decision comes after the company lost tens of millions of dollars funding the network, which struggled with stalled growth and insufficient revenue to cover operating costs.
Users of Abstract have been urged to withdraw their assets before the shutdown to avoid losing access. As of the latest data, approximately $76 million in assets remained on the network. Abstract processed over 325 million transactions but faced challenges such as limited institutional activity and a small decentralized finance market.
The shutdown marks the second Ethereum-linked network to close in less than a week, following the announcement by Blast on October 2. Igloo CEO Luca Netz cited the decision to prioritize the Pudgy Penguins business over continuing to support Abstract. The company considered but ultimately rejected options like launching a token or pursuing an ICO to raise additional funds.
Abstract was launched in January 2025 with the aim of attracting mainstream consumers to cryptocurrency applications through the Pudgy Penguins community. However, despite initial hype and participation from brands like Disney and Red Bull Racing, the network failed to gain meaningful liquidity. Netz had earlier advised developers to avoid building financial applications on Abstract, focusing instead on entertainment-oriented products.