Abstract, a consumer-focused Ethereum layer-2 blockchain created by Pudgy Penguins parent company Igloo Inc., will cease operations before the end of the year. The decision to close the network follows financial losses amounting to tens of millions of dollars.
Igloo Chief Executive Officer Luca Netz stated that the company provided financial backing for Abstract over an 18-month timeframe. Despite building a community of millions and drawing major brands, the project struggled to scale and ultimately failed to establish product-market fit.
The shutdown announcement for the Ethereum scaling network was made on Tuesday, with reporting published on October 7, 2026. The closure ends Igloo's attempt to run its own consumer-oriented blockchain infrastructure.
For traders holding positions on Bitget, Bybit, MEXC, or OKX, this announcement changes nothing directly regarding perpetual futures funding rates, trading fees, or market liquidity. Unless derivative contracts tied directly to the project are active on those venues, the shutdown has no direct impact on existing positions.
Source: cointelegraph — Pudgy Penguins-backed Abstract to shut down after ‘tens of millions’ in losses
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