TL;DR
Pudgy Penguins is one of the top OG PFP collections and it last month established Igloo as its parent company. After that, Igloo acquired Frame, which was developing a Layer-2 blockchain, and Frame has now refocused on providing expert assistance to Igloo in creating Abstract, a Layer-2 blockchain focused on consumer crypto. Abstract is backed–among other investors–by Peter Thiel’s Founders Fund, and it’s aiming to go live around the end of this year.
With many of the top legacy NFTs from the last cycle nowhere near their old all-time highs, Pudgy Penguins stands out from the pack as a collection to watch, and news about a new Pudgies-related blockchain development called Abstract has shown that the Penguins definitely aren’t standing still.
Let’s dive into what Abstract is, who’s backing it–and there are some big names on board–and how it ties in with Pudgy Penguins, a collection that has been transformed from a troubled PFP drop into a notably dynamic player in the crypto world.
What Is the Abstract Story So Far?
Earlier this week, there was an important announcement from a new firm called Igloo, and so actually, let’s back up for a moment and start the story by establishing exactly what Igloo is. As covered here last month, Igloo is the newly created parent company of Pudgy Penguins, as set up by Pudgy Penguins itself alongside an NFT IP licensing platform called OverpassIP.
On launch, Igloo declared bullishly that it was going to “create the largest on-chain community, driving the consumer crypto revolution”. It also mentioned plans for “an end-to-end ecosystem for new people to come into crypto”, and very notably, in a diagram showing how all the components of the plan were intended to fit together, there was a mysterious section labeled simply as redacted, and this was accompanied also by a stated intention to “complete this loop”.
Frame Acquired to Build Abstract
From there–the establishment of Igloo–what soon followed was the acquisition of Frame at the end of June. Established in 2023, Frame had been working on developing a Layer-2 blockchain that was to be focused on NFTs, and built on Arbitrum. It was particularly pivoted towards attracting creators and collectors, with an emphasis on NFT royalty enforcement, and this focus on community-building echoes Igloo’s ambitions to foster an on-chain community within a complete ecosystem.
With the announcement of the acquisition by Igloo, Frame revealed that it would be sunsetting its previous plans, and becoming fully focused on contributing to a new Layer-2 blockchain project called Abstract, and it detailed the tech to be utilized: ZK Stack (a modular framework for building custom Layer-2 and Layer-3 chains on Ethereum) and EigenDA (a data availability solution).
Also–and importantly for anyone working on securing airdrops this cycle–Frame explained that anyone eligible for Frame token rewards (which had already been allocated, but not launched) would now be included in Abstract’s future incentive system, although exact details about how that might work have yet to be announced.
Abstract Ambitions
Abstract has made its immediate goal clear from the start, as it says it’s built specifically for “consumer crypto”. This fits in with a broader theme of the current crypto cycle, which is the idea of making crypto more user-friendly, leveling up the UX, and getting the masses not just HODLing coins, but interacting on-chain without too much friction.
And in addition to the community focus, Abstract has also outlined ambitions to be a go-to chain for builders, with plans for a resource called the Abstract Builder Incubator, which will offer marketing support, partner connections, and technical assistance, and with applications to join now open to developers.
Who Is Backing Abstract?
Part of what has generated interest in Abstract–besides the relationship with Pudgy Penguins and the Frame connections–is the backing that it has so far secured. Headlines have focused on a funding round that raised $11 million, with proceedings led by Founders Fund, which is well known for having been co-founded by Silicon Valley main character–and key member of the PayPal Mafia–Peter Thiel.
Abstract’s other investors are Fenbushi Capital, 1kx, Everest Ventures Group, and Selini Capital, and another layer to the venture has been introduced through the establishment of a group called Cube Labs, which is in charge of development.
Abstract is preparing to launch by the end of this year, and where the project may have an advantage over its Layer-2 rivals is through its capacity to leverage the existing Pudgy Penguins community. In fact, this was directly explained by Founder Fund partner Joey Krug, who said,
“Instead of paying massive amounts to acquire users, they acquire them organically through the Pudgy brand.”
Pudgy Penguins March On
As for the Pudgy Penguins collection itself, it’s a rare example of an OG PFP collection that looks more confident and collectible now than it did during the first major NFT wave of 2021/22. The brand branched out successfully into physical toys last year, and CEO Luca Netz–who acquired the project from its initial founders in 2022–appears skilled at navigating all kinds of market conditions, from bullishness and bubbles to rocky patches.
Having said that, it’s also worth noting that the news about Abstract hasn’t bumped up the floor price on the PFPs themselves. However, prices remain steady at around the 10 ETH mark–still a substantial JPEG outlay–and Pudgy Penguins NFTs look like a solid hold as the project continues, with solid backing, to push forward into new territory.
