Igloo Inc., the parent company of Pudgy Penguins, is shutting down its consumer-focused Ethereum layer 2 network, Abstract. The decision follows 18 months of development and operation, during which the project failed to achieve product-market fit despite significant investment. CEO Luca Netz stated that the experiment resulted in losses totaling tens of millions of dollars.
Despite the closure, the network recorded notable metrics, including over 400,000 users, 4 million created wallets, and more than 325 million processed transactions. The ecosystem hosted 144 applications and generated over $40 million in revenue. However, high operating costs and a lack of liquidity in decentralized finance markets rendered the business model unsustainable.
Before the announcement on October 6, 2026, Abstract held between $47 million and $48 million in total value locked. Users are required to migrate their assets using the platform's native bridge or Migration Hub before the network goes offline on December 15, 2026. Igloo has confirmed it will not launch an Abstract token or conduct an ICO.
The project originated in summer 2024 following Igloo's acquisition of Frame, which had previously raised over $11 million. The mainnet launched in January 2025 with a focus on mainstream adoption through tools like the Abstract Global Wallet. Following the shutdown, Igloo plans to refocus its resources on the Pudgy Penguins brand and its PENGU token.
