The collection’s floor price plunged after the creator of Azuki wrote a blog post detailing their involvement in previous NFT ventures.
Death of Azuki
“Azuki is dead,” announced the host of “The Death of Azuki” on Twitter Space on Monday evening.
The dramatic statement comes after the posting of a blog post by the pseudonymous Azuki founder Zagabond, who revealed today that he was previously involved in a few mediocre NFT initiatives that some dubbed “rug pulls.”
What are NFTs?
A non-fungible token (NFT) is financial security made up of digital data recorded in a distributed ledger called a blockchain. NFTs can be sold and exchanged since their ownership is recorded in the blockchain and can be transferred by the owner. Digital data such as images, films, and audio are frequently referenced in NFTs. Unlike fungible cryptocurrencies, NFTs are uniquely recognizable. The digital file that an NFT refers to determines its market worth.
NFT proponents say that they provide a public certificate of authenticity or proof of ownership, but the legal rights that an NFT conveys can be ambiguous. The ownership of an NFT as enforced by the blockchain has no intrinsic legal meaning, and it does not give copyright, intellectual property rights, or other legal rights over the digital material it is connected with. An NFT does not block the production of NFTs that reference identical files, nor does it restrict the sharing or copying of its associated digital file.
NFTs have been criticized for the high energy costs and carbon footprint associated with authenticating blockchain transactions, as well as their frequent usage in art scams. The NFT market has been compared to a Ponzi scheme or an economic bubble.
Azuki – What is that?
The Azuki collection’s starting price, or floor price, dropped from around 19 ETH ($41,800) to around 10.9 ETH ($24,000) within hours of Zagabond’s post being published.
Azuki, on the other hand, hasn’t had the best month in terms of floor pricing. According to data from NFT Price Floor, the collection’s starting price has dropped 56 percent in the last month and roughly 63 percent in the last week. This higher drop is mainly due to the crypto and NFT markets collapsing across the board.
What people have to say about the downfall of Azuki
“On-chain sleuth,” as he calls himself. ZachXBT expressed his displeasure with Azuki’s blog post, accusing Zagabond of “rugging” on prior ventures. A rug pull occurs when an NFT project founder launches a project with a bold roadmap only to abandon it (and their money) after the initial sale.
Zagabond, on the other hand, rejected the rug pull charges leveled against the Tendies, CryptoPhunks, and CryptoZunks (the latter two of which derive their art from the CryptoPunks NFTs).
“Do I wish they had done better? Obviously. “At the end of the day, there was no product-market fit, but that doesn’t mean it’s a rug,” Zagabond added.