Pudgy Penguins Owner Is Shutting Down Its Abstract Chain, Where $47 Million Still Sits
Users must bridge out before Dec. 15 or lose access to about $48 million in assets, Igloo CEO Luca Netz said.
- On Tuesday, Igloo Inc. announced that Abstract, its Ethereum layer-2 blockchain, will shut down on Dec. 15. The closure ends a consumer-focused crypto project that Igloo CEO Luca Netz says cost "tens of millions of dollars."
- Calling the chain "operationally unsustainable," Netz wrote that the company could no longer justify the costs as growth stagnated. The network struggled with thin liquidity, a narrow DeFi offering, and limited institutional interest.
- With roughly $48 million in assets currently on the chain, users must move their funds before the December deadline. Abstract previously recorded more than 400,000 users and 325 million transactions through tie-ins with Red Bull Racing and Disney.
- Abstract is directing users to its Migration Hub, which lists bridges like Stargate, Relay, and Jumper. The team warned users to watch for impersonators while relocating projects from the shuttering network.
- Following the shutdown, Igloo will shift its full focus to the Pudgy Penguins brand, its NFTs, and the PENGU token. The decision follows a similar shutdown by Blast, another Ethereum layer 2 that closed on Oct. 2 due to sustainability concerns.
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Cointelegraph
The New York LedgerPudgy Penguins-Backed Abstract L2 to Shut Down
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, Pudgy Penguins-Backed, to Wind Down After ‘Tens of Millions’ Losses
Abstract, a consumer-focused Ethereum layer-2 blockchain backed by Igloo Inc. and built around the Pudgy Penguins ecosystem, said Tuesday that it will shut down later this year. In a post on X, the project attributed the decision to an inability to achieve product-market fit after pursuing a “consumer crypto” strategy that it now describes as [...]
Igloo Inc., the parent company of the popular NFT "Pudgy Penguins," has announced the closure of its consumer-oriented Ethereum Layer 2 (L2) network... The post Ethereum L2 "Abstract," originating from a popular NFT, announces closure—is the consolidation of L2 networks beginning in earnest? first appeared on NADA NEWS.
CoinStats - Abstract to shut down on December 15, urges u...
🚨 Abstract will close on December 15, urging users to withdraw funds from its network. 💥 The $ETH layer-2 project cited slow growth, thin liquidity, and difficult market conditions. 🧐 Pudgy Penguins’ parent Igloo Inc. struggled to scale the platform for everyday users. Continue Reading:Abstract to shut down on December 15, urges users to withdraw funds The post Abstract to shut down on December 15, urges users to withdraw funds appeared first…
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