Pudgy Penguins CEO Luca Netz said Abstract is being gradually shut down, with parent company Igloo Inc. redirecting its full attention to Pudgy Penguins, Pudgy NFTs, and PENGU. In his statement, Netz said Igloo had continued funding Abstract over the past 18 months, absorbing losses in the tens of millions of dollars across two years, while the project still failed to reach product-market fit. He said Abstract had at one point processed more than 300 million on-chain transactions, launched Portal and AGW, and brought in multiple global brands that helped build an active on-chain ecosystem. Even so, growth remained constrained by a weak DeFi stack, limited liquidity, low institutional participation, and high costs. Netz added that falling market demand for related products left the company unable to keep subsidizing Abstract from the Pudgy Penguins business. He also said Igloo chose not to raise money for Abstract through a token launch or an ICO because it lacked confidence that such a token would have durable demand.
Abstract is being gradually shut down, according to a statement published on Oct. 7 by Pudgy Penguins CEO Luca Netz. He said parent company Igloo Inc. will now direct all of its efforts toward Pudgy Penguins, Pudgy NFTs, and PENGU.
Netz said Igloo had continued to fund Abstract over the past 18 months, with cumulative losses reaching tens of millions of dollars over two years, while the project still failed to find product-market fit, or PMF.
What Netz said about Abstract’s trajectory
In the same statement, Netz said Abstract had at one point recorded more than 300 million on-chain transactions. It also launched Portal and AGW, and attracted multiple global brands that helped build an active on-chain ecosystem.
Still, he said the project’s growth was held back by an underdeveloped DeFi ecosystem, limited liquidity, relatively low institutional participation, and high operating costs. He added that demand for related products had also declined, leaving the company unable to continue pulling funds from the Pudgy Penguins business to support Abstract.
No token sale or ICO
Netz said that even after the company had lost an eight-figure dollar amount, Igloo still chose not to fund Abstract through a token issuance or an initial coin offering, because it did not have enough confidence to show that a token would have sustained demand.
He also thanked the Abstract community and said that, as the project is wound down, the company will focus fully on turning Pudgy Penguins into a global cultural phenomenon.
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