Igloo Inc., the parent company of Pudgy Penguins, announced the shutdown of its Ethereum layer-2 network, Abstract, effective December 15, 2026. The decision follows 18 months of operation characterized by financial losses reaching tens of millions of dollars. The company stated that no Abstract token will be issued, ending speculation among users who anticipated an airdrop.
The network, which launched its mainnet in January 2025, managed to onboard over 400,000 users and hosted 144 applications. Despite partnerships with brands like Disney and Red Bull Racing, the project suffered from stagnant growth, low liquidity, and limited institutional adoption. Igloo previously acquired the Frame development team in June 2024 and raised over $11 million in July 2024.
CEO Luca Netz explained that the company is shifting its focus and resources back to the core Pudgy Penguins brand and its PENGU token. Users are advised to bridge their assets off the Abstract network through designated migration hubs before the December 15 deadline to avoid permanent loss of access. Developers currently building on the chain must now decide whether to migrate or discontinue their projects.
