Igloo Raises $11 Million for New Blockchain

Igloo, the parent company of the popular NFT brand Pudgy Penguins, has raised over $11 million in a strategic funding round led by Peter Thiel’s Founders Fund to develop a new consumer-focused Layer 2 blockchain called Abstract.

Other investors in the round included Fenbushi Capital, 1kx, Everest Ventures Group, and Selini Capital, Igloo said Tuesday. The company will use the funding to set up Cube Labs, a new venture under the Igloo banner, to oversee and contribute to the development of the Abstract Layer 2 blockchain.

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 developers include popular crypto Twitter personalities Cygaar, 0xbeans, and Stinkypablo. Cygaar also serves as CTO of Cube Labs. Meanwhile, Lee is the CEO of Cube Labs.

Lee declined to comment on when Igloo started raising funds, the structure of the round, or the company’s post-funding valuation. Igloo was unveiled last month and teased a new project at the time, aiming to push crypto to the masses. Also last month, Igloo acquired Frame, an Ethereum-based rollup co-founded by Cygaar, to help develop Abstract.

What is Abstract?

Abstract is a new Layer 2 blockchain being built using Matter Labs’ ZK Stack and EigenLayer’s data availability layer EigenDA to help make the process of developing decentralized apps easier, cheaper, and safer.

When asked how Abstract is different from numerous other Layer 2 blockchains, Lee told The Block, “Our difference is in our approach.” He said Abstract is taking a consumer-centric approach and “focusing on distribution ourselves and through our various unannounced partners and helping apps build real community and culture (something we did at Pudgy Penguins). We also plan to have a builder incubator meant to take apps from 0 to 1.”

Abstract is currently live in testnet, Lee said, adding that the mainnet is expected to launch near the end of the year. He declined to comment when asked if Abstract will also launch its own token alongside the mainnet.

There are currently about 30 people working on Abstract globally, with Cube Labs having an office in Miami. Lee noted he’s looking to hire more people in engineering, community growth, marketing, and business development functions.

Joey Krug, partner at Founders Fund, said Pudgy Penguins’ success could pave the way for Abstract. “Pudgy Penguins has the best 0 to 1 distribution edge we’ve seen in the crypto space,” Krug said in a statement. “Instead of paying massive amounts to acquire users, they acquire them organically through the Pudgy brand. They’re leveraging this to grow Abstract, a consumer L2 focused on making on-chain experiences mainstream. By building for users first, and allowing companies and brands to better interface with their consumers, Abstract is well-positioned to onboard the masses to crypto.”

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