- Igloo Inc is shutting down its Ethereum Layer 2 blockchain, Abstract Chain, after losing tens of millions of dollars over two years.
- Users have until December 15 to withdraw funds before they become inaccessible, but critics call the window too short.
- Polygon faced backlash for joking about not shutting down its own chain just hours after the announcement.
Igloo Inc, the parent company of Pudgy Penguins, announced the shutdown of its Ethereum Layer 2 blockchain, Abstract Chain, on October 6, 2026, after losing tens of millions of dollars over two years. Users have a short window to act, as all funds must be moved off the chain by December 15 to avoid becoming permanently inaccessible.
The wind-down period has drawn sharp criticism from the community, with one X user calling it “too short” for users to safely migrate assets. Furthermore, some users discovered a class action waiver that must be agreed upon before funds can be moved, adding another layer of friction to the process. Pseudonymous user “Shugyō” speculated that “they have 100% buried this hoping people don’t notice,” while another user, “Eddie,” claimed these are “totally normal terms btw.”
According to Igloo Inc CEO Lucas Netz, Abstract was not popular enough after three years of operation, citing a “reduced appetite for what we had built” and stifling “insufficient liquidity.” The chain’s focus on a “consumer crypto” model proved unsustainable, as the firm admitted, “Our growth began to stagnate due to our restricted DeFi ecosystem.” Consequently, Netz revealed that Igloo Inc had been funding Abstract for the last 18 months using funds diverted from Pudgy Penguins, the firm’s penguin-themed NFT project. This summer, Pudgy Penguins also shuttered its 3D platforming game, Pudgy Party, which Netz claimed had lost millions and would cost another $2.5 million to continue.
Meanwhile, Polygon awkwardly joked about not closing its own chain just hours after Abstract’s announcement, writing, “It is with a heavy heart that we must inform you: this is not a shutdown announcement.” X users responded by calling the joke “bad taste” and claiming it’s “not good to dance on the grave of another.” Polygon Foundation CEO Sandeep Nailwal later acknowledged the misstep, noting the joke “didn’t land as expected” and clarifying it was an inside joke about Polygon’s critics. He added, “There was absolutely no intention to subtweet the Abstract shutdown.”
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