SizeProp raises pre-seed round led by Igloo Inc to scale crypto prop trading

What's the deal? SizeProp, a crypto proprietary trading platform, has closed a pre-seed funding round led by Igloo Inc — the corporate parent behind the Pudgy Penguins NFT brand. The company says it has already granted more than $50M in trading capital to over 3,500 traders through its platform, which lets users prove their skills through evaluation challenges before accessing funded accounts.

Why now? Crypto markets have rebounded sharply in 2025, drawing a fresh wave of retail and semi-professional traders looking for ways to trade with more capital than they personally hold. Prop trading — where firms fund skilled traders in exchange for a share of profits — has exploded in traditional finance and is now migrating into crypto. SizeProp is positioning itself as infrastructure for this shift.

Igloo Inc's involvement signals growing interest from web3-native companies in backing the financial plumbing layer of crypto, not just consumer-facing NFT projects.

What could go wrong? Crypto prop trading sits in a regulatory grey zone. Authorities in several jurisdictions have scrutinised prop-trading models — particularly those that charge evaluation fees — questioning whether they function more like gambling products than legitimate capital allocation. A sudden regulatory clampdown could threaten the entire model.

There's also execution risk: granting $50M in capital to thousands of traders requires robust risk management. One bout of extreme volatility could expose weaknesses in the platform's controls.

The signal: The deal reflects two converging trends. First, prop trading is becoming a mainstream on-ramp for aspiring crypto traders who lack personal capital. Second, web3 companies like Igloo Inc are diversifying beyond their core brands into fintech infrastructure bets. If the model proves sustainable, expect more crypto-native firms to fund the picks-and-shovels layer of decentralised trading.

Read more: coinmarketcap.com