# Igloo Winds Down Abstract After Tens of Millions in Losses

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/27190
Published: 2026-10-07T02:35:08.000Z
Updated: 2026-10-07T02:35:08.000Z
Section: Business

> The Pudgy Penguins parent will redirect resources to Pudgy Penguins, its NFTs and PENGU after Abstract failed to find a scalable path forward.

Igloo Inc., the parent company of Pudgy Penguins, is winding down its Abstract Ethereum layer-2 network after spending tens of millions of dollars without finding a sustainable growth path.

The company will redirect its resources to Pudgy Penguins, Pudgy NFTs and PENGU. CEO Luca Netz said Abstract processed more than 300 million transactions over two years and attracted numerous global brands, but its DeFi ecosystem, liquidity and institutional participation remained too limited.

Netz said the project failed to reach product-market fit as market interest declined and the network lacked a scalable operating model. Igloo will stop funding Abstract through the Pudgy Penguins business rather than continue supporting the network.

Igloo also chose not to issue a token or conduct an initial coin offering to finance Abstract, saying it lacked sufficient confidence that a new token would have sustained demand.

Abstract users must move their assets off the network by Dec. 15, when the chain is scheduled to shut down. Igloo said its focus will now return to expanding Pudgy Penguins as a global cultural brand and supporting PENGU.