Abstract Shuts Down: What Went Wrong?

The first mistake I believe Abstract made was playing with people’s expectations, with Luca Netz being the main person responsible.

His previous success reviving Pudgy Penguins, along with one of the biggest airdrops in history, $PENGU, made everyone believe that simply having him involved would guarantee success (the multiple times he claimed this would change streaming, or that he could launch the token at a $3B market cap if he wanted to but was aiming for $10B, didn’t exactly help either).

And here comes one of the biggest problems in crypto right now: farmers.

Through its XP system, Abstract sold people the idea that using the network would eventually translate into a massive reward. But if that’s the only reason you have users, who exactly is your real market?

Their entire narrative revolved around becoming the consumer chain, the network that would finally bring retail and everyday users into crypto. But Abstract had already left a lot to be desired since its mainnet launch.

Terrible products, most of them casinos or derivatives, recycled NFT collections, a failed attempt to use memecoins as a way to attract more attention. Everything ended up failing.

The reality is that the entire concept of a consumer chain has been an absolute failure across every ecosystem. The same thing happened with Base, and even with Sophon.

But the difference is that Sophon, for example, actually launched a token. Down 99%, sure, but someone made money. Here, everyone lost.

And while I respect the decision not to launch a token knowing it would be a failure, you’re basically telling everyone who believed in you that the money and time they invested in your product are now worth absolutely nothing.

And trust me, in the long run, that leaves a much deeper scar than an unfortunate airdrop.

Carlitos

Abstract, Luca Netz

While in Singapore, a long awaited announcement was finally made public. https://x.com/AbstractChain is winding down. The Igloo inc, parent company of Pudgy Penguin tried to build a new consumer chain and ultimately failed in doing so.

They burned through several dozen million USD trying to support small accounts streaming games that no one cared about. In hindsight, this money could have been saved and spent in the Pudgy ecosystem.

Luca made a post and explained his pov, stating his full focus is returning to Pudgy and that this was bullish for holders. JBond called him out for promises made but never fulfilled:

JBond @jbondwagonLast year, <span class="tweet-fake-link">@LucaNetz</span> confidently said during NFT Paris that by 2026, “Abstract is gonna be the biggest L2 by a Texas Mile”

He even told everyone to hold him accountable for it

Today, Abstract is winding down so here I am, trying to hold him accountableView on X →

and Adam decided to step in earlier today, to stop the bleeding and bought more Pudgy NFTs.

Adam Weitsman @AdamWeitsmanThis weekend I wanted to support one of my favorite collections during a difficult time. Decided to buy 117 Pudgy Penguins on chain to spread confidence for the community I have grown to love.

Wanted to support this OG project that’s bringing happiness to many. The Huddle will …View on X →

I don’t know what the future brings, but honestly, none of this makes me bullish on Pudgy or legacy NFTs. We have seen Bored Ape Yacht Club commit similar mistakes and struggle afterwards. I am glad I sold most of my Pudgy NFTs weeks ago and also finally, decided to sell my whole $PENGU airdrop, after a very long time of just hodling and believing.

I want to reiterate that my love for the broader Pudgy community is huge, there are incredible people in the huddle. But yeah, one side is my emotions and connections to people and on the other side there is the team and their actions, promises and execution.

I do wish them well, but I will likely also sell my remaining pfp and probably put my face to my X account. I am tired of animal pfps and nfts that promise a texas mile and deliver a nano inch.