Pudgy Penguins-backed Abstract to shut down in December

Abstract, a consumer-focused Ethereum layer-2 blockchain built by Pudgy Penguins’ parent company Igloo Inc., will shut down Dec. 15, 2026, after failing to find a sustainable business model.

In an X post, Abstract described its focus on consumer crypto as unsustainable. Luca Netz, Igloo’s CEO, wrote that the company had funded Abstract for 18 months.

“After losing tens of millions of dollars over two years, building consumer products, assembling an all-star team, onboarding some of the biggest brands in the world, and building a community of millions, we still had not found product-market fit,” Netz wrote.

Abstract launched its mainnet in January 2025 to promote crypto adoption through entertainment-focused products. The network was designed to reduce the technical steps required to use blockchain applications.

More than 144 applications had launched on Abstract, which reported more than 400,000 users. The network also formed partnerships with Red Bull Racing and Disney. Abstract and Netz cited limited institutional participation, low liquidity and a small decentralized finance ecosystem as barriers to growth.

Users with assets on Abstract have been instructed to transfer them to another network through the Migration Hub or Abstract’s Native Bridge. Funds that remain on the network after the deadline will become inaccessible. Abstract’s engineering and ecosystem teams will work with projects built on the network to migrate to other blockchains.

Abstract joins several blockchain networks that have announced plans to close after failing to establish sustainable businesses. Ethereum layer-2 network Blast said its operating costs exceeded its revenue, while Bitcoin-focused Botanix announced its closure in June after failing to find sufficient product-market fit.