Igloo, Inc. raises $11M for new consumer blockchain, Abstract

Igloo, Inc., the parent company behind the Pudgy Penguins NFT collection, has raised $11 million to establish Cube Labs. This new strategic initiative will oversee and further contribute to the development of Abstract, a new blockchain designed to drive mass adoption.

Founders Fund led the financing round with participation from Fenbushi Capital, 1kx, Everest Ventures Group and Selini Capital.

“Pudgy Penguins has the best 0 to 1 distribution edge we’ve seen in the crypto space. 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 onchain 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,” said Joey Krug, Partner at Founders Fund. “Abstract is built for everyone — not just cryptonatives — and we’re extremely happy to be supporting them on this journey.”

To achieve its vision of widespread adoption, Abstract aims to make the process of developing decentralized apps easier, cheaper and safer. To accelerate onboarding, The Abstract Foundation provides a dedicated builder and brand support.

Abstract team

Abstract was co-invented by Luca Netz, Lorenzo Melendez and Michael Lee. Netz and Melendez currently lead Igloo, Inc. as its CEO and President respectively. Meanwhile, Lee has decades of experience in the tech industry, including video games and web3. He previously led growth for ZKsync at Matter Labs and served as the VP of community at Activision Blizzard.

“Abstract will open up a new world of possibilities for crypto-native developers and global brands — in turn creating the dominant crypto consumer platform,” said Lee, co-inventor and CEO of Cube Labs. “We are at the beginning of a new era where blockchain technology will reinvent the idea of digital ownership and seamlessly integrate into our daily lives, enhancing how we live, work, connect and play.”

The developers behind Abstract — Cygaar, 0xbeans and stinkypablo — officially joined the Igloo team in June 2024. Together, the group incubated the project as the not-for-profit Abstract Foundation. Now, Abstract will enter testnet soon.

“Our mission is to build infrastructure to power the next wave of consumer crypto applications,” said Cygaar, CTO at Cube Labs. “This requires collaborating on technology that makes crypto UX simpler, building a platform for mass distribution, and working closely with teams looking to build the next generation of consumer-facing experiences. By doing so, we have the potential to truly onboard retail users to crypto for the first time.”

Igloo’s Pudgy Penguin empire

Igloo, Inc. oversees the growing Pudgy Penguins empire. In addition to two NFT collections, the company is developing the Pudgy World video game and operates OverpassIP, its IP licensing protocol for NFT holders.

At the time of writing, the original Pudgy Penguins collection has the second highest market cap of all Ethereum-based NFT projects. Meanwhile, the Lil Pudgy collection is the sixth highest. Together, the combined market cap of both collections totals nearly $400 million.

“My work has always centered around creating a web3 ecosystem that enables new ways for brands to interact directly with their consumer base,” said Luca Netz, CEO of Igloo, Inc. and co-inventor of Abstract. “Our vision is to change the dynamic of how users interact with blockchain technology and easily merge both the real and digital worlds. We are excited to drive the consumer crypto revolution forward.”

via GIPHY

Outside of its NFTs, Pudgy Penguins sells licensed merchandise online and in-store at major U.S. retailers, Walmart and Target. Additionally, its official Giphy uploads have accrued over 25 billion views.