Pudgy Penguins' PENGU token fell 7% Wednesday after parent company Igloo Inc. announced it is shutting down its Abstract blockchain. Igloo CEO Luca Netz said Wednesday that Abstract is winding down. Netz said Igloo is shifting its full focus back to Pudgy Penguins, Pudgy NFTs and PENGU.
Igloo acquired Frame in summer 2024 to build a blockchain for consumer crypto. Igloo hoped to replicate the mass appeal Pudgy Penguins achieved with NFTs. Abstract launched the Portal and AGW. Abstract brought major global brands onto the blockchain. Abstract processed over 300 million transactions.
Abstract faced limited decentralized finance activity, weak liquidity, little institutional interest and high costs. Those conditions made growth unsustainable even in the areas that were performing well. Netz said Igloo had quietly funded Abstract for 18 months, losing tens of millions of dollars. Igloo chose to shut down Abstract rather than launch a token or conduct an initial coin offering to raise fresh capital. Netz argued that a token only works when real demand supports the token. Netz argued that launching a token without genuine conviction would have disadvantaged the community that supported Abstract.
PENGU declined sharply from its $0.0107 high and fell below its 20-day exponential moving average at $0.00911. PENGU's Parabolic SAR indicator turned bearish, signaling a near-term loss of momentum. However, PENGU remained above its 50-day and 200-day exponential moving averages. That position preserved PENGU's broader recovery structure following August's reversal from multi-month lows. PENGU faces resistance at $0.00911, followed by $0.0107. PENGU has support at $0.00852, followed by $0.00802.
Shiba Inu (SHIB) fell 7% after failing to sustain gains near $0.0000063 and falling below its 20-day exponential moving average. SHIB is testing support along the trendline extending from July's lows. SHIB's burn rate dropped 100% over the past 24 hours, with no tokens destroyed during that period. The absence of token burns reversed the elevated burn activity seen in recent weeks. SHIB faces resistance at $0.0000057, followed by $0.0000063. SHIB has support near its rising trendline around $0.0000050.
Dogecoin (DOGE) fell 6% after failing to sustain gains near its $0.106 high and falling below its 20-day exponential moving average. DOGE and SHIB show fading momentum on their relative strength indicators. However, DOGE and SHIB remain above their rising trendlines for now. DOGE faces resistance at $0.0925, followed by $0.106. DOGE has support at $0.082.