Pudgy Penguins parent company, Igloo Inc., has secured $11 million in funding to develop Abstract, a new Ethereum Layer-2 blockchain. This move is driven by the limitations identified in existing Layer-2 solutions. Abstract aims to create a more user-friendly and efficient platform by leveraging ZK cryptography and focusing on a consumer-centric approach. The project is backed by a strong team with experience in the NFT and blockchain space, and it seeks to build a vibrant community around its platform.
1. The Fundraise
Igloo Inc., the company behind the popular NFT brand Pudgy Penguins, has garnered significant attention by raising over $11 million. This funding round aims to develop an Ethereum Layer-2 expansion network called Abstract. The round saw participation from notable tech investment firms such as Founders Fund, Fenbushi Capital, 1kx, Everest Ventures Group, and Selini Capital.
The investment will be used by Igloo to establish Cube Labs, a subsidiary dedicated to the development and operation of Abstract.
Igloo was officially launched last month, hinting at a new project aimed at mainstream crypto adoption. Additionally, last month, Igloo acquired Frame, an Ethereum-based rollup co-founded by Cygaar, to contribute to the development of Abstract.
2. The Abstract platform
"Abstract opens up a new world of potential for crypto developers and global brands. We are at the dawn of a new era where blockchain technology will redefine the concept of digital ownership, seamlessly integrating into daily life and enhancing the ways we live, work, connect, and entertain." - Michael Lee, co-founder of Abstract and CEO of Cube Labs
2.1. What is Abstract?
Luca Netz, CEO of Igloo Inc., explained that during the development of Pudgy Penguins, they identified limitations in current Layer-2 solutions. According to Netz, these solutions do not fully meet user needs and fail to optimize the cryptocurrency experience. The acquisition of Frame and the development of Abstract aim to address these issues, creating a more user-friendly and efficient environment.
Abstract is a new Layer 2 blockchain. The project employs cutting-edge ZK cryptography, an open-source technology that ensures low-cost, rapid, and secure transactions for users and developers alike. This user-centric platform utilizes the ZK Stack and EigenDA to streamline and enhance the development process.
The abstract is currently operating on testnet, noting that the mainnet is anticipated to launch by the end of the year.
2.2. Their USP
What sets Abstract apart from other Layer 2 blockchains is that Abstract adopts a consumer-centric approach, emphasizing direct distribution and collaboration with various yet-to-be-announced partners.
Joey Krug, partner at Founders Fund stated that Pudgy Penguins possesses the most effective 0 to 1 distribution strategy in the crypto industry.
Rather than spending substantial sums on user acquisition, they attract users naturally through the Pudgy brand. “Whenever someone buys a Pudgy Penguin in stores like Walmart and Target, Igloo makes money on those sales, and it’s a way to not only pay for users, but acquire users profitably, which is extremely novel within crypto,” Krug wrote.
They are utilizing this approach to expand Abstract, a consumer-focused Layer 2 solution aimed at mainstreaming on-chain experiences. By prioritizing user needs and enabling companies and brands to better connect with their customers, Abstract is strategically positioned to bring a large number of people into the crypto space.
Abstract also focuses on fostering real community and culture within applications, a strategy successfully implemented at Pudgy Penguins. Furthermore, Abstract intends to establish a builder incubator designed to guide applications from inception to completion.
2.3. The Abstract’s team
The Abstract is incubated under the not-for-profit Abstract Foundation and co-invented by:
- Michael Lee, former Senior Vice President at Ethereum Layer 2 network ZKsync developer Matter Labs
- Luca Netz, CEO of Pudgy Penguins and Igloo;
- and Lorenzo Melendez, President of Pudgy Penguins and Igloo and former CTO of Pudgy Penguins.
Abstract’s development team includes well-known crypto Twitter personalities Cygaar, 0xbeans, and Stinkypablo. Cygaar also holds the position of CTO at Cube Labs.
Pudgy Penguins, launched during the NFT boom in 2021, faced challenges when it lost community support. However, under Netz’s leadership, the project has been revitalized and is now one of the leading NFT brands. Evidence of its resurgence is seen in the value of Pudgy Penguins NFTs, which have surpassed those of Bored Ape Yacht Club, with the current floor price exceeding $37,000.
The information provided in this article is for reference only and should not be taken as investment advice. All investment decisions should be based on thorough research and personal evaluation.
