The Azuki NFT collection, a subsidiary of the Los Angeles-based startup Chiru Labs, had been a blue-chip brand in the world of digital assets. However, their recent release of the Elementals NFTs failed to meet expectations, causing a surge in long-term holders selling off their Azuki NFTs. They confessed that they had “missed the mark” with the Elemental drop and promised to do better.
Due to the collection’s alleged dilution of the original Azukis, the community condemned it for being too similar to those creatures. The Azuki team apologized for their errors and promised to execute better in the future.
In January 2021, the Azuki NFT collection entered the scene, capturing the attention of crypto enthusiasts. With the recent release of the Elementals, Azuki aimed to grow its ecosystem by attracting new members. However, the launch faced challenges.
Because of the disorganized minting procedure, the community was unable to distinguish between the new collection and the old Azukis. The Elementals were also criticized for sharing too many similarities with their predecessors, which weakened Azuki’s distinctiveness.
The disappointment in the Elementals drop was reflected in the sell-off that followed. Long-term holders of Azuki NFTs, who had held onto their digital assets for over a year, joined the exodus. According to crypto data provider Nansen, 132 long-term Azuki holders sold their NFTs during or after the Elementals drop, representing an 817% spike compared to previous trends. This sudden surge in selling highlighted the discontent among the community and the need for Azuki to regain their trust.
As part of the exclusive 20-minute window for purchasing Elementals, holders of Beanz Official NFTs, which act as “sidekicks” to the human avatars in the Azuki collection, were also given the opportunity to participate. 10,000 NFTs were sold in their entirety in around 15 minutes, bringing in $37.5 million. Additional 10,000 Elementals were airdropped to existing Azuki members on top of that. However, the excitement surrounding the Elementals launch quickly turned into a sell-off frenzy.
In addition to the Azuki NFTs, 89 established owners of Beanz tokens also sold their digital assets, marking a 155% increase in long-term Beanz holders unloading their NFTs. This significant sell-off was partly attributed to Blur’s lending platform, which saw over 50% of outstanding loans liquidated or repaid after the flash sell-off triggered by the Elemental minting.
Recognizing the community’s dissatisfaction, the Azuki team took responsibility for the missteps. They acknowledged their failure to deliver a collection that truly differentiated itself from the original Azukis.
In a statement on Twitter, they admitted that the minting process had been chaotic saying, “We hear you – the mint process was hectic, the PFPs feel similar and, even worse, dilutive to Azuki” and expressed their commitment to improving communication and execution. The team aims to regain the trust of the community and rectify their missteps in future releases.
The launch of the Elementals NFT collection by Azuki has been met with disappointment and a significant sell-off by long-term holders. The striking similarities between the new collection and the original Azukis, along with a chaotic minting process, caused frustration among the community.
However, Azuki has pledged to learn from this experience and make amends, vowing to improve communication and execution in future endeavors. As the journey of Azuki continues, time will tell if they can redeem themselves and rebuild the trust of their loyal community, bringing forth new and innovative collections that live up to their promises.