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 built by Pudgy Penguins’ parent company Igloo Inc., said Tuesday it will shut down this year after struggling to scale and find 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 with the aim of driving consumer crypto adoption by targeting mainstream entertainment. For users, it aimed to strip 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. This was despite more than 144 apps having been deployed on the network, while the network onboarded more than 400,000 users and secured partnerships with brands including Red Bull Racing and Disney. Abstract said users with funds on the network should bridge their assets off the chain, which will shut down on Dec. 15, 2026. Users can do so through the Migration Hub or Native Bridge. Any funds not bridged by the deadline will be inaccessible. Abstract said its engineering and ecosystem team will also work with Abstract-based projects to migrate to other chains. Related: Proof of Play to shut down after blockchain gaming thesis falls short Abstract joins a growing list of blockchain networks planning to wind down this year after struggling to build sustainable businesses. Ethereum layer-2 Blast said last week that operating costs exceeded revenue, while Bitcoin-focused Botanix announced its closure in June after failing to find sufficient product-market fit. Magazin