Pudgy Penguins’ parent firm shuts down its own blockchain

Pudgy Penguins’ parent company, Igloo Inc, announced the shutdown of Abstract Chain after “losing tens of millions of dollars over two years” trying to keep it afloat. 

Users have until December 15 to move funds off the Ethereum Layer 2 blockchain before they become inaccessible. 

The wind-down period was criticized for being “too short,” while other users found a class action waiver that needs to be agreed upon first in order to migrate funds.

Pseudonymous X user “Shugyō” speculated that “they have 100% buried this hoping people don’t notice,” while another, “Eddie,” claimed these are “totally normal terms btw.” 

According to Igloo Inc CEO, Lucas Netz, Abstract wasn’t popular enough after three years of operation. 

Netz claimed there was a “reduced appetite for what we had built,” while Abstract was stifled by “insufficient liquidity.”

Abstract’s focus on a “consumer crypto” chain wasn’t sustainable, and the firm admitted, “Our growth began to stagnate due to our restricted DeFi ecosystem.”

Abstract is winding down.

Starting today, all of @IglooInc's focus will go towards taking Pudgy Penguins, Pudgy NFTs, and $PENGU to the next level.

When we acquired Frame in the summer of 2024, the vision was to build the blockchain for consumer crypto. Pudgy Penguins had shown… https://t.co/MVpsINS9zw

Read more: The controversial return of Pudgy Penguins founder ColeThereum

Netz claimed Igloo Inc was funding Abstract “over the last 18 months” with funds taken from Pudgy Penguins, Igloo Inc’s penguin-themed cryptocurrency and NFT project that’s pivoted to merchandising.  

This summer, Pudgy Penguins also announced the closure of its 3D platforming game Pudgy Party. 

Netz claimed Pudgy Party lost the firm millions and would cost another $2.5 million to continue. Its player count also plummeted to just over 200 active users. 

During its heyday, Netz made outlandish claims that the in-game tradable cosmetic system would allow users to make more money than a minimum wage job.

Polygon rather awkwardly joked about not closing its own chain just hours after Abstract’s announcement. 

It wrote, “It is with a heavy heart that we must inform you: this is not a shutdown announcement,” before bragging about its own performance. 

X users responded by calling the joke “bad taste,” and claiming that it’s “not good to dance on the grave of another.”

Never a good idea to grave dance in public. https://t.co/027Pkt3c4B

Read more: Pudgy Penguins removes ‘racist’ post after Manchester City complaint

Eventually, Polygon Foundation CEO Sandeep Nailwal noted that the joke “didn’t land as expected,” and that it was 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.”

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