The parent company of well-known non-fungible token collection Pudgy Penguins has raised $11 million from investors including Founders Fund to help launch a consumer-focused blockchain for the mass adoption of cryptocurrency.
What Happened: Since being acquired by Luca Netz for 750 Ethereum ETH/USD in 2022, Pudgy Penguins has emerged as a leading NFT collection, with its consumer products now available in major retailers worldwide.
The company has launched plushies, keychains, blind bags and more inside the likes of Walmart Inc WMT, Target TGT, Five Below FIVE and on Amazon.com Inc AMZN.
Now the attention of Igloo Inc, the parent company of Pudgy Penguins, turns to establishing Cube Labs and developing Abstract.
Igloo announced Tuesday that it raised $11 million in a funding round led by Peter Thiel's Founders Fund. Additional investors included Fenbushi Capital, 1kx, Everest Ventures Group and Selini Capital.
The new funding round will help accelerate the development of Abstract, a blockchain designed to power consumer apps and drive the mass adoption of crypto.
"Abstract will open up a new world of possibilities for crypto-native developers and global brands – in turn creating the dominant crypto consumer platform," Abstract co-investor and Cube Labs CEO Michael Lee said. "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 announcement said Abstract is built to lead the consumer crypto revolution and bring billions of people onchain for the first time. Abstract's technology is said to make the process of developing decentralized apps cheaper and easier.
Abstract was co-invented by blockchain entrepreneurs Michael Lee, Luca Netz and Lorenzo Melendez and engineered by web3 developers Cygaar, 0xbeans, and stinkypablo.
"My work has always centered around creating a web3 ecosystem that enables new ways for brands to interact directly with their consumer base," Igloo Inc CEO Luca Netz said. "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."
Read Also: EXCLUSIVE: Pudgy Penguins — The Next Chapter In The Ultimate Web3 Comeback Story
Why It's Important: While the NFT sector has faced pressure over the last year, Pudgy Penguins has remained one of the most talked about names in crypto and has crossed over into the mainstream.
The company's consumer products and GIFs created from the Penguins NFTs, which have been viewed over 25 billion times, have put the brand in front of millions of people that don't realize the crypto-native founding of the company.
Several Founders Fund partners hit on this notion with comments in the press release and on social media.
"Instead of paying massive amounts to acquire users, they acquire them organically through the Pudgy brand," Founders Fund partner Joey Krug said.
Krug, who sports a Pudgy Penguin as his profile picture on X, joined Founders Fund in 2023.
"Abstract is built for everyone – not just cryptonatives – and we're extremely happy to be supporting them on this journey."
In a thread on X, Krug said Pudgy Penguins has a negative customer acquisition cost (CAC).
"The reason is whenever someone buys a Pudgy Penguin in stores like Walmart and Target, Igloo Inc actually makes money on those sales, and it's basically a way to not only not pay for users, but actually acquire users profitably."
Krug said the company's products are also a fun way to onboard people to crypto with their first interaction.
The Founders Fund partner called Netz "one of the best marketers on the planet."
"Doing our first main investment in a project in the NFT space, but I believe over the next year Luca will continue to take this more and more mainstream such that it no longer feels that way."
Founders Fund associate Bridget Harris shared on X that Pudgy Penguins has the best distribution edge she's seen in the crypto space.
"They've created the most lovable brand in crypto by far – one that appeals to everyone, not just cryptonatives," Harris said.
Harris said the consumer crypto revolution to bring the masses onchain is similar to Netscape's mission to bring the world online. She said Pudgy, Igloo and Abstract aim to bring the masses onchain.
The investment in Igloo Inc now sits alongside past and current investments made by Founders Fund that include SpaceX, Palantir, Stripe, Neuralink, OpenAI, The Boring Company and Polymarket.
Pudgy Penguins characters were used in an advertisement from VanEck to promote its recently launched VanEck Ethereum ETF ETHV.
The Pudgy Penguins NFTs currently have a floor price of 11.19 Ethereum, or around $38,730.16.
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Photo by Pratya Jankong courtesy Benzinga.
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