Pudgy Penguins parent Igloo Inc pulls the plug on Abstract Chain

Igloo Inc, the company behind Pudgy Penguins, has announced it is closing down Abstract Chain, citing losses of "tens of millions of dollars over two years" in its efforts to sustain the project.

Funds must be moved off the Ethereum Layer 2 network by December 15, after which they will no longer be accessible.

The wind-down window has drawn criticism for being "too short," and some users have flagged a class action waiver that must be accepted before funds can be migrated.

Pseudonymous X user "Shugyō" suggested that "they have 100% buried this hoping people don't notice," while another, "Eddie," called the terms "totally normal terms btw."

Abstract Chain relied on Pudgy Penguins subsidies

Igloo Inc CEO Lucas Netz said Abstract had failed to gain traction after three years of operation.

Netz pointed to a "reduced appetite for what we had built" and said the chain was held back by "insufficient liquidity."

The "consumer crypto" focus proved unsustainable, with the firm acknowledging, "Our growth began to stagnate due to our restricted DeFi ecosystem."

Abstract is winding down.

Starting today, all of @IglooInc's focus will go towards taking Pudgy Penguins, Pudgy NFTs, and $PENGU to the next level.

When we acquired Frame in the summer of 2024, the vision was to build the blockchain for consumer crypto. Pudgy Penguins had shown… https://t.co/MVpsINS9zw

— Luca Netz (@LucaNetz) October 6, 2026

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Netz said Igloo Inc had been propping up Abstract "over the last 18 months" using funds drawn from Pudgy Penguins, the company's penguin-themed crypto and NFT venture that has since shifted toward merchandising.

Earlier this year, Pudgy Penguins also announced the end of its 3D platformer Pudgy Party.

Netz claimed that game cost the firm millions and would have needed another $2.5 million to keep running. Its player base had shrunk to just over 200 active users.

At its peak, Netz had made bold promises that the in-game tradable cosmetic system could earn players more than a minimum wage job.

Polygon joked about shutting down, then backtracked

Hours after Abstract's announcement, Polygon made an awkward joke about not closing its own chain.

It posted, "It is with a heavy heart that we must inform you: this is not a shutdown announcement," before boasting about its own metrics.

X users reacted by calling the joke "bad taste," with one saying it's "not good to dance on the grave of another."

Never a good idea to grave dance in public. https://t.co/027Pkt3c4B

— A.J. Warner (@ajwarner90) October 7, 2026

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Polygon Foundation CEO Sandeep Nailwal later admitted the joke "didn't land as expected," explaining it was aimed at Polygon's own critics.

He wrote, "There was absolutely no intention to subtweet the Abstract shutdown. I have huge respect for @LucaNetz and his work, and we wouldn't do this because we ourselves sunset our zkEVM, so we know the pain. I hope it clears the air."