Pudgy Penguins firm secures $11m to build new L2 project

Igloo, Inc., the company behind the non-fungible token Pudgy Penguins, has announced it raised $11 million in funding to build its latest blockchain project.

Peter Thiel’s Founders Fund led the fundraising round, which Igloo says will fund a new Ethereum (ETH) based consumer Layer 2 solution to bolster crypto adoption.

Igloo eyes consumer-focused blockchain

The press release on Tuesday highlighted that Igloo will use the funds to support a new venture dubbed Cube Labs. Igloo seeks to use Cube Labs to research and develop Abstract, a new L2 platform targeted for mass adoption of cryptocurrencies.

According to Igloo, Abstract targets new opportunities for crypto developers and major brands worldwide. The consumer-facing platform aims to tap into digital ownership technology and integrate everyday life activities such as work, social interaction, and play.

Cube Labs is taking the user-first approach in building Abstract and will soon deploy in testnet ahead of supporting the next wave of consumer crypto products and users’ onchain experience.

Zero-knowledge powered

Abstract will leverage zero-knowledge (ZK) proof technology to power its functionality and use. In addition to security, users will benefit from ZK-powered fast and low-cost transactions.  

The platform will also integrate ZK Stack and use EigenLayer’s data availability layer, EigenDA, to enhance its decentralized finance ecosystem.

“Our mission is to build infrastructure to power the next wave of consumer crypto applications,” Cube Cygaar, chief technology officer at Cube Labs, said in the news release.

The Cube Labs CTO noted that collaborating with platforms and other stakeholders who want to see crypto users enjoy better UX is, therefore, crucial to Abstract’s development.

Igloo’s flagship NFT product, the Pudgy Penguins, has seen huge success since the new team took over from its original creators. Its brand focus has seen it achieve milestones such as the launch of Pudgy Penguins-branded toys that have since launched across Walmart and Target.

The fundraiser also attracted investment from Fenbushi Capital, Everest Ventures Group, 1kx, and Selini Capital.