Shortly after the Abstract shutdown announcement, a new address withdrew $1 million from Kraken and immediately purchased 25 Fat Penguin non-fungible tokens in the market. As of the time of writing, the wallet still holds $766,000 worth of Ethereum.

The floor price for Fat Penguins is reported at 3.3 Ethereum, up 6.8% in 24 hours. On-chain records do not link this address to the parent company Igloo or its team, and the purchase occurred after the announcement.

Igloo CEO Luca Netz stated that Abstract will gradually shut down, ceasing operations on December 15. At that time, unwithdrawn funds will be inaccessible. Before the announcement, there were still about $48 million in assets on-chain. The parent company has funded the chain for about 18 months, with losses reaching eight figures, and has refused to issue tokens for survival or conduct an initial coin offering.

Abstract is an Ethereum Layer 2 network set to launch its mainnet in January 2025, previously involved in the acquisition of Frame in the summer of 2024. It has completed over 325 million transactions, with decentralized exchange trading around $6 billion, approximately 4 million wallets, and ecosystem revenue exceeding $40 million. Disney and Red Bull Racing have previously conducted brand activities on the chain. The reason for the shutdown is stagnated growth, thin liquidity, low institutional participation, and a small scale of decentralized finance.

In July 2024, Igloo raised over $11 million for this consumer-facing Layer 2, led by Founders Fund. Netz stated that they can no longer extract funds from the Fat Penguin business to support the chain. From the announcement date, Igloo has redirected all resources back to Fat Penguins, Fat Penguin NFTs, and PENGU. This is the second Ethereum-related network to announce its closure within a week.

The buyer is a newly created address that withdrew Ethereum from the exchange after the announcement, while the seller is a Fat Penguin holder near the floor price. The event was driven by the shutdown announcement, with funds shifting from Layer 2 subsidies to brand collectibles. Beneficiaries include the Fat Penguin floor and PENGU narrative, while those affected are applications remaining on Abstract, users who did not withdraw, and projects reliant on on-chain fees.

Source: Public Information