Abstract, Ethereum Layer 2 Backed by Pudgy Penguins, Announces Shutdown After Major Losses
(2 hours ago) · 1 source · Summarized by CryptoBipto
Abstract, an Ethereum Layer 2 network associated with Pudgy Penguins creator Igloo Inc., has announced it will shut down after reportedly losing tens of millions of dollars. The project had aimed to build a consumer-focused Layer 2 blockchain but was unable to sustain operations.
WHY IT MATTERS
A Layer 2 network is like an express lane built on top of a main highway (in this case, Ethereum). It helps process transactions faster and more cheaply. Abstract was one such express lane, created by the same company behind the well-known Pudgy Penguins NFT collection. Its shutdown after losing tens of millions of dollars illustrates that building blockchain infrastructure is expensive and risky, even for teams with strong brand recognition. For anyone new to crypto, this is a reminder that projects — even those backed by popular names — can fail, and that the Layer 2 space is highly competitive with no guarantee of success.
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- theblock.co
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