Igloo Inc, the parent company behind Pudgy Penguins, said it will shut down Abstract Chain after losing tens of millions of dollars over two years trying to keep the Ethereum Layer 2 network alive. Users have until December 15 to move funds off the chain. After that, the assets will no longer be accessible.
Users object to the shutdown terms
The wind-down period quickly drew criticism. Some users said the deadline to migrate funds was too short. Others said they found a class action waiver that must be accepted before funds can be moved.
Pseudonymous X user Shugyō wrote that 「they have 100% buried this hoping people don’t notice」. Another user, Eddie, said these are 「totally normal terms btw」.
Netz says Abstract failed to find enough demand
According to Igloo Inc CEO Luca Netz, Abstract never became popular enough after three years of operation. He said there was a 「reduced appetite for what we had built」 and that the network was constrained by 「insufficient liquidity」. The company also said its focus on a consumer crypto chain was not sustainable and stated, 「Our growth began to stagnate due to our restricted DeFi ecosystem.」
In a post on X, Netz said Abstract is winding down and that, starting immediately, all of Igloo Inc’s attention will shift to taking Pudgy Penguins, Pudgy NFTs, and $PENGU to the next level. He said that when the company acquired Frame in the summer of 2024, the goal had been to build the blockchain for consumer crypto.
Igloo says Pudgy Penguins funds supported Abstract for 18 months
Netz also said Igloo Inc had been funding Abstract over the last 18 months with money taken from Pudgy Penguins, the company’s penguin-themed cryptocurrency and NFT project, which later pivoted toward merchandising.
Earlier this summer, Pudgy Penguins also announced the closure of its 3D platforming game Pudgy Party. Netz said the game had already lost the company millions and would require another $2.5 million to continue. He added that its player count had fallen to just over 200 active users.
During the project’s stronger period, Netz had claimed that the game’s tradable cosmetic system would let users make more money than a minimum wage job.
Polygon joke draws backlash, then clarification
Hours after Abstract’s shutdown announcement, Polygon posted a message joking that it was not closing its own chain. The post said, 「It is with a heavy heart that we must inform you: this is not a shutdown announcement,」 before boasting about Polygon’s performance.
Users on X called the joke 「bad taste」 and said it is 「not good to dance on the grave of another」.
Polygon Foundation CEO Sandeep Nailwal later said the joke 「didn’t land as expected」 and described it as an inside joke about Polygon’s own critics. He wrote, 「There was absolutely no intention to subtweet the Abstract shutdown. I have huge respect for @LucaNetz and his work, and we wouldn’t do this because we ourselves sunset our zkEVM, so we know the pain. I hope it clears the air.」