Pudgy Penguins-backed L2 Abstract to shut down after losing 'tens of millions'
Abstract, the consumer-focused Ethereum Layer 2 backed by Pudgy Penguins parent Igloo, will shut down on Dec. 15 after citing stagnant growth, thin liquidity, a restricted DeFi ecosystem and limited institutional adoption.
Abstract said more than 144 apps were deployed on the network and over 400,000 users were onboarded, but said operating a chain focused exclusively on consumer crypto had proven unsustainable as a standalone model.
Igloo funded Abstract for the past 18 months and lost "tens of millions of dollars," according to CEO Luca Netz. The company will now redirect resources toward Pudgy Penguins and PENGU.
Netz said Igloo decided against launching an Abstract token or continuing to fund the network. Users must bridge their assets off Abstract before Dec. 15 or risk losing access to their funds.
Abstract, the consumer-focused Ethereum Layer 2 backed by Pudgy Penguins parent Igloo, will shut down on Dec. 15 after citing stagnant growth, thin liquidity, a restricted DeFi ecosystem and limited institutional adoption.
Abstract said more than 144 apps were deployed on the network and over 400,000 users were onboarded, but said operating a chain focused exclusively on consumer crypto had proven unsustainable as a standalone model.
Igloo funded Abstract for the past 18 months and lost "tens of millions of dollars," according to CEO Luca Netz. The company will now redirect resources toward Pudgy Penguins and PENGU.
Netz said Igloo decided against launching an Abstract token or continuing to fund the network. Users must bridge their assets off Abstract before Dec. 15 or risk losing access to their funds.