Abstract Testnet Goes Live and Secures $11M Funding: What to Expect from Pudgy Penguins' New Blockchain Venture

Pudgy Penguins take flight – not just in the world of NFTs, but into the realm of blockchain development!

Igloo, the company behind the popular penguin collectibles, has secured $11 million in funding led by Founders Fund.

This strategic investment marks the launch of Cube Labs, a new entity within Igloo focused on building Abstract, a consumer-focused Layer 2 blockchain.

What is Abstract

Abstract is designed as an Ethereum Layer 2 (L2) blockchain, leveraging advanced zero-knowledge (ZK) cryptography to facilitate fast, cheap, and secure transactions.

The blockchain aims to scale Ethereum by offloading computations off-chain and verifying transactions through ZK proofs.

This innovative approach promises to retain Ethereum's security properties, including censorship resistance and liveness guarantees, while significantly reducing transaction costs and enhancing throughput.

Abstract is EVM-compatible, meaning it supports all existing Ethereum tools and can seamlessly integrate most existing smart contracts without modification.

By moving computation from Ethereum to a dedicated L2 blockchain, Abstract can process transactions more quickly and efficiently.

As a ZK rollup, it uses validity proofs to confirm state transitions on Ethereum, ensuring that transactions are verified accurately and cost-effectively.

Michael Lee, Abstract co-inventor and CEO of Cube Labs:

"Abstract will open up a new world of possibilities for crypto-native developers and global brands – in turn creating the dominant crypto consumer platform."

The Masterminds Behind Abstract

Steering the ship of Abstract is a dream team of seasoned tech veterans and crypto visionaries.

Luca Netz
CEO of Igloo and Pudgy Penguins

Socials: X | Linkedin | Youtube

This young entrepreneur, in his mid-20s, is no stranger to success.

After acquiring Pudgy Penguins in April 2022 for $2.5 million and spearheading its partnership with Walmart to distribute the toys in 2,000 stores nationwide, he has since been focused on creating a web3 ecosystem that enables new ways for brands to interact directly with their consumer base.

Netz is now setting his sights on revolutionising the entire crypto landscape.

Netz’s strategic vision for Abstract is to leverage the organic growth strategy that propelled Pudgy Penguins to success.

Netz stated:

"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."

Michael Lee
CEO of Cube Labs

Socials: X | Linkedin

A seasoned veteran in the tech and web3 space, Lee brings his expertise to the table as the mastermind behind Cube Labs, the entity overseeing Abstract's development.

Lee's experience driving growth for Ethereum Layer 2 network ZKsync and leading launches for Activision Blizzard makes him uniquely qualified to navigate the technical complexities of Abstract.

His ultimate goal?

To transform digital ownership and integrate blockchain seamlessly into our daily routines.

Lorenzo Melendez
President and Co-founder

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Rounding out the core team is Melendez, who serves as both president of Igloo and co-founder of Abstract. His contributions are instrumental in shaping the project's direction and ensuring its success.

Adding to the star power are popular crypto personalities Cygaar, 0xbeans, and Stinkypablo (founder of Frame) who contribute to Abstract's development, with Cygaar also holding the CTO position at Cube Labs.

The collective expertise of these individuals is set to drive Abstract’s mission to reinvent digital ownership and seamlessly integrate blockchain into everyday life.

The Investors Who Believe in the Abstract Dream

Founders Fund isn't the only investor recognising Abstract's potential.

Abstract's potential has captured the attention of some of the biggest names in venture capital.

The $11 million funding round was spearheaded by Founders Fund, the legendary firm co-founded by tech billionaire Peter Thiel.

Joining them is a prestigious list of investors, including Fenbushi Capital, 1kx, Everest Ventures Group, and Selini Capital.

This impressive backing speaks volumes about the confidence these industry leaders have in Abstract's ability to disrupt the status quo.

Abstract's Secret Sauce: Building Bridges, Not Walls

When asked what sets Abstract apart from the crowded landscape of Layer 2 solutions, Lee emphasises a consumer-centric approach.

Lee explains:

"We're focusing on distribution ourselves and through our various unannounced partners. We want to help apps build real community and culture, something we mastered with Pudgy Penguins. We're also planning a builder incubator to empower applications from the ground up."

This strategy leverages the organic user acquisition success of Pudgy Penguins, fostering a strong community around Abstract from the get-go.

Joey Krug, partner at Founders Fund, praised Pudgy Penguins’ organic user acquisition strategy, stating,

"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 on-chain experiences mainstream."

Leveraging ZK Cryptography for Scalability

Abstract's technological foundation is built on the ZK Stack, incorporating the latest advancements in zero-knowledge cryptography.

This technology enables Abstract to scale Ethereum by offloading computation off-chain and verifying transactions through ZK proofs.

By utilising state diffs, Abstract minimises the data submitted to Ethereum, further reducing costs and enhancing efficiency.

The chain's EVM compatibility ensures that developers can seamlessly migrate their applications, utilising familiar tools such as MetaMask, Foundry, and Hardhat.

As the Abstract Foundation, a non-profit organisation, supports the project, the emphasis remains on building a consumer-centric blockchain that bridges the gap between the real and digital worlds.

The project commits to make blockchain technology accessible and integrated into everyday life.

Building a Robust Blockchain Ecosystem

Abstract's success hinges on its ability to foster a vibrant community and culture.

The project aims to create a robust ecosystem by supporting builders through initiatives such as the Abstract Builder Incubator.

This program will provide marketing support, user and builder incentives, connections to partners, and focused technical assistance to help developers create impactful products and achieve mass distribution.

"Builders are the lifeblood of Abstract."

Cygaar emphasised, reflecting the project's dedication to nurturing innovation and collaboration within the crypto community.

Abstract’s Current Status and Future Plans

Currently, Abstract is in its testnet phase, and the mainnet launch is anticipated near the end of the year.

The project’s developers have yet to confirm whether a token will be launched alongside the mainnet.

Abstract aims to make decentralised app development more accessible, affordable, and secure through the use of advanced ZK technology.

To participate in Abstract’s development, interested parties are encouraged to join the Abstract community on Discord and Telegram.

The project also plans to introduce a unique social mechanism for community engagement and levelling up within their Discord.

Additionally, the Abstract Builder Incubator will soon be launched to support builders in creating innovative products and achieving mass distribution.

How to Participate in Abstract Testnet

To participate in the Abstract testnet, users need to add the network with following details:

Name: Abstract Testnet
Description: The public testnet for Abstract.
Chain ID: 11124
RPC URL: https://api.testnet.abs.xyz
Explorer: https://explorer.testnet.abs.xyz
Currency Symbol: ETH

Developers interested in building on Abstract can fill out the ecosystem form available on the Abstract website.

As Lee aptly puts it,

"Abstract will open up a new world of possibilities for crypto-native developers and global brands – in turn creating the dominant crypto consumer platform."

Can Pudgy Penguins' Popularity Hatch Abstract into Blockchain Prominence?

Coinlive sees Abstract as a daring attempt to bridge the gap between the real and digital worlds through a consumer-centric Layer 2 blockchain.

While the project boasts an impressive team and leverages Pudgy Penguins' organic growth strategy, its success hinges on overcoming challenges like fostering a robust developer ecosystem and widespread user adoption.

Abstract's testnet is live, but competition is fierce in the crowded L2 landscape..

While capitalising on Pudgy Penguins' existing community is a clever strategy, can Abstract's "organic" approach cultivate a loyal following and carve out a niche in the ever-evolving blockchain space?