Pudgy Penguins-Backed Abstract to Shut Down After ‘Tens of Millions’ in Losses

The admission that a chain with major brand partners and a multi-million-person community still could not reach product-market fit is the substance here, not the shutdown itself. It cuts against the assumption that distribution and consumer reach are sufficient to sustain an L2, and it suggests the constraint sits in demand rather than in onboarding. Whether other consumer-focused chains face the same gap between audience size and durable usage is the open question.