Azuki Implosion Continues Following Ill-Advised Elementals Drop

The world of cryptocurrencies is so volatile that even seemingly unruly people can see their world crumbling around them. Ask Sam Bankman Freed. Around this time last week, Azuki’s NFT collection was in full swing after a fancy Las Vegas meet-and-greet, but an accidental NFT drop sent the project into complete chaos.

All the trouble started when Azuki launched its latest “Elementals” NFT set, which was initially successful and raised $38 million. But the wheels were quickly turned off when the big reveal revealed 20,000 NFTs featuring art eerily similar to the flagship collection and some duplicate artwork.

The backlash from there was unprecedented, even worse when the founders flippantly exposed a journey strewn with abandoned projects. However, this latest incident had a devastating effect on the Azuki Collection, with floor prices falling from a stable 17 ETH per token to a low of 6 ETH in just over a week.

Azuki’s Misfortune Infiltrates the NFT World

As bad as it may seem, things keep getting worse for Azuki. The recently launched Elementals NFT has already started trading at a significantly lower price than the original mint price of 2 ETH (0.8399 ETH at the time of writing). Meanwhile, Azuki’s affiliated project, Beanz, saw a similar bottom price drop, dropping from around 1.4 ETH to a low of 0.399.

But as the backlash continues, the team faces the rebellion of the newly formed AzukiDAO. They are basically voting on whether Azuki should redistribute the 20,000 ETH raised from the Elementals sale. Meanwhile, elsewhere, the founder of the CryptoPhunks NFT project has threatened to file a lawsuit against Azuki founder Zagabond over a series of misdemeanor charges.

So Azuki rushes to pick up the debris after a very quick and spectacular implosion, but time will tell if she can finally recover. A more immediate concern, however, surrounds the large number of adzuki-backed ETH loans issued through the blended lending platform.

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*All investment/financial opinions expressed by NFT PLAZA are based on the site moderator’s personal research and experience and are for educational material only. Individuals should thoroughly research any product before making any type of investment.