Can Azuki NFTs Bounce Back?

May 13

By lourdes


Credit: Opensea

Investors are worried about the Azuki NFT Collection because of the recent price crash. Twitter asserts that the collection is a rug pull, causing even more worry.

The Azuki NFT Collection was created by Japanese artist Azuma Hikari and was released in January 2022. The anime-style characters known as Azukis were priced at $3,400 per NFT during the launch and sold out in three minutes! Lets also remember that at a certain point Azuki sales easily exceeded sales of projects such as the Bored Ape Yacht Club and CryptoPunks. The Azuki NFT collection was one of the most popular in the crypto world, but it seems to have lost its luster. After peaking at over $1 million in value, the collection has crashed to under $100,000.

Details On The Crash Of The Azuki NFT Collection 

A rug pull is when a project or collection suddenly disappears, leaving investors with nothing. The project’s creators often do this to make a quick profit. The crypto Twitter community asserts that the Azuki NFT Collection is a rug pull because he admitted he was behind the team who vanished for CryptoPhunks, Tendies, and CryptoZunks.

Zagabound didn’t realize that admitting to this would create chaos amongst the Azuki investors. He recently defended the project, saying that it was never meant to be an investment. In a blog post, he said:

“The idea behind Azuki was never to make money for investors. It was an experiment in NFT art and game design, meant to push the boundaries of what could be done with blockchain technology.”

Although he says that he’s learned from his mistakes, and Azuki is an entirely different project, the community did not take this well.

Whether or not you believe Azuki is a rug pull, the fact remains that the value of the collection has crashed. Some believe that the team behind the project should have been more transparent about the risks involved in buying the NFTs. It’s unclear what the future holds for Azuki, but it seems unlikely that it will ever regain its former glory.

We all had very high hopes for this project. Our CEO and Founder, July Grullon, says this project should serve as an example to the NFT community. He encourages investors to ask themselves the following questions before investing in a project:

  1. What value does NFT provide to the community?
  2. What is different about this NFT collection?
  3. Will the community leaders believe in their vision in the next five years (ex. even without the sales)?

If you want to learn more about how to avoid rug pulls, read this guide we created for you: 5 Tips To Avoid NFT Hackers

Featured Image Credit: @AzukiOfficial

Disclaimer: The opinions expressed in the article are for general informational purposes only and are not intended to provide specific financial or investment advice.