Azuki NFTs Collapse 63% Amid Revelations of Founder’s Failed NFT Projects

May 12, 2022, 10:00 AM AEST - 1 week ago

Azuki NFTs have plunged 63 percent in price after the project’s pseudonymous founder Zagabond revealed his previous involvement in three failed NFT projects – some of them considered rugpulls.

Azukies are currently the sixth-highest-selling collection but now both the project and its founder face a massive backlash from the crypto Twitter community, shortly after Zagabond published a blog post talking about his previous experience building NFT projects:

In the blog post, Zagabond revealed he was behind three NFT projects before Azukies – CryptoPhunks, Tendies and CryptoZunks – all abandoned by their founders after they failed to gain traction.

Zagabond’s approach was to share his previous work and experience in the digital art field but the publication of his post backfired within hours as several users pointed out his previous projects were scams. After the blog’s publication, Azukies went from trading at an average of 20 ETH, or approximately US$49,900, to barely 9 ETH ($21,380).

Zagabond Dismisses Accusations

Zagabond quickly dismissed the accusations, saying he and the other creators delivered everything that was promised and the fact that they had no PMF, or product-market fit (the degree to which a product satisfies a market demand), didn’t mean the projects were rugs:

One Zagabond defender noted that if these projects had delivered their users what was promised, then the creators had no need to continue to work on them:

It seems that consumers still have an expectation that the team and the developers will continue to work on the project in perpetuity. And as a creative, are you indebted to these community members and this project forever?

Zagabond blog post

However, the majority remained reluctant. “No PMF yet you profited millions while buyers were left holding the bag?” one user commented.

Another Twitter user shared on-chain data about the CryptoPhunks creator performing a flashloan transaction of 5,000 ETH on the NFT marketplace LooksRare:

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