Pudgy Penguins’ parent company, Igloo, announced it’s shutting down Abstract, a consumer-focused L2 on Ethereum. Its mainnet will shut down on December 15, just over a year after launch.
The numbers don’t look too bad:
400,000 users, more than 140 apps, and partnerships with Disney and Red Bull Racing.
Hundreds of millions of transactions.
But Luca Netz himself said they burned tens of millions of dollars over the past 18 months.
Growth stalled, liquidity was thin, and the DeFi ecosystem never took off. Subsidies couldn’t keep things going.
No token, no ICO.
Just a straightforward shutdown.
There’s still around $47–48 million sitting on-chain.
Users need to bridge their assets out before December 15. After that, they won’t be able to access them.
If you have assets there, don’t wait.
All resources are being redirected to the Pudgy Penguins brand and PENGU.
On the day the news broke, PENGU fell around 5.6%, to about $0.009.
In the short term, this narrows the narrative. The “own chain” premium is gone, and PENGU has one less part of its story.
In the medium term, it’s about where the savings go:
Will they really be invested in the brand and token utility, or is this just a way to stop the bleeding?
Honestly, I don’t think shutting down the chain itself is anything to criticize.
If you can’t afford to keep it running, shutting it down is better than keeping up appearances.
But what will support PENGU’s valuation now that the chain is gone? That’s the question that’s finally on the table.
$PENGU
The numbers don’t look too bad:
400,000 users, more than 140 apps, and partnerships with Disney and Red Bull Racing.
Hundreds of millions of transactions.
But Luca Netz himself said they burned tens of millions of dollars over the past 18 months.
Growth stalled, liquidity was thin, and the DeFi ecosystem never took off. Subsidies couldn’t keep things going.
No token, no ICO.
Just a straightforward shutdown.
There’s still around $47–48 million sitting on-chain.
Users need to bridge their assets out before December 15. After that, they won’t be able to access them.
If you have assets there, don’t wait.
All resources are being redirected to the Pudgy Penguins brand and PENGU.
On the day the news broke, PENGU fell around 5.6%, to about $0.009.
In the short term, this narrows the narrative. The “own chain” premium is gone, and PENGU has one less part of its story.
In the medium term, it’s about where the savings go:
Will they really be invested in the brand and token utility, or is this just a way to stop the bleeding?
Honestly, I don’t think shutting down the chain itself is anything to criticize.
If you can’t afford to keep it running, shutting it down is better than keeping up appearances.
But what will support PENGU’s valuation now that the chain is gone? That’s the question that’s finally on the table.
$PENGU