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I looted a frozen chain killing the Percht Queen the other day, and it seems to be valuable but I don't know what it does.

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No, the Frozen Chain doesn't have any use at the moment. We believe it's just used for decorative purposes. The only item that The Percht Queen drops that seems to be useful is the Percht Skull which every year you can hand in 3 every event you participated in to NPC Frosty to get a total of 9 mounts.

Here's an official reply about the items (interestingly enough she says mainly, probably because the Percht Skulls have a use)-

Q... Is intended to be only decorative items instead of equipment that we can use?  Can you expand on the new items and their stats?
A: As far as I know a lot of the new items have mainly a decorative purpose. CM Reply in News: Winterlight Solstice