High-profile NFT collections Azuki Elementals and Bored Ape Yacht Club face market turbulence amid controversial moves.
Despite a sluggish NFT market, Azuki, a renowned name from Chiru Labs, has successfully raised a staggering $38 million worth of Ethereum. This feat was achieved in a brisk 15 minutes through a complete sell-out in its latest drop. The offer consisted of the new Elementals Profile Picture (PFP) collection with 10,000 NFTs, all of which were sold via a Dutch auction starting at a price of 2 ETH ($3,800) each. Prior to the auction, Chiru Labs gifted an additional 10,000 Elementals NFTs to existing Azuki NFT owners.
The Exclusive Azuki NFT Drop
In an exciting twist, Azuki and Beanz NFT holders were presented with a special 10-minute window for purchasing the Elementals NFTs. This exclusive offer took place ahead of the public sale. The result was a complete sell-out of all 10,000 NFTs during this presale phase. With this outcome, the planned public sale was effectively canceled as announced by Azuki through their official account just 15 minutes into the presale.
The successful sale brought in a total of 20,000 ETH for Chiru Labs, corresponding to the current Ethereum price of $38 million. With the completed sale, the team is now gearing up to reveal the Elementals artwork. The unveiling may “stir” a rush of secondary NFT trades in the marketplaces.
Azuki’s Historical Success in the NFT Market
Azuki has cemented its position as one of the top NFT projects, generating more than $1 billion worth of secondary trading volume since its launch in 2022. It stands as the most successful new project among those not originating from pre-existing Web3 IP in that year. Its spinoff, the Beanz collection, has also experienced a phenomenal response, generating a trading volume of $276 million to date.
The Aftermath: Falling Prices Post Azuki NFT Launch
While the Azuki Elementals launch garnered $38 million, it seems the aftermath has stirred some controversy. A recent trend has seen holders selling Elementals significantly below the mint price, following the unveiling of the artwork. The initial mint price for the Azuki Elementals NFTs was 2 ETH (about $3,800) each, but they are now as low as 1.6 ETH ($3,025) on the OpenSea marketplace. Some prices have even dipped to as low as 1.32 ETH ($2,490).
Controversy Surrounding Azuki Elementals Art
There’s been an upsurge of criticism from holders, NFT creators, and collectors regarding the Azuki Elementals artwork. Complaints primarily stem from the artwork’s similarity to the original anime-inspired Azuki PFPs. Upon comparing the new Elementals NFTs and the originals, critics argue that there are only minor changes and some questionable imperfections.
The Impact on Original Azuki Collection
Concerns about the Elementals collection potentially diluting the original Azuki project’s appeal and value have seemingly prompted a mass sell-off of the original NFTs. The floor price, representing the lowest listed NFT price on secondary marketplaces for Azuki, has dropped about 32% over the past 24 hours. It currently stands at 9.35 ETH (around $17,650) according to NFT Price Floor.
Speculations Around Azuki’s Artwork Strategy
Speculations are brewing around Chiru Labs’ strategy, with some collectors suggesting that the similar Elementals artwork was intentionally designed as a distraction. The speculation proposes that the startup could potentially update the artwork and utilize the backlash to foster engagement around the new collection. However, others believe if this were the case, Chiru Labs would have implemented the strategy in a more ironic fashion.
Overall, people have yet to see the impact of the new Elementals collection on Azuki’s original project. It’s clear that the NFT market is complex and volatile, with the reactions to the Azuki Elementals launch being a testament to this.
BAYC Fluctuate Amidst Machi Big Brother’s Trades
Over the weekend, Bored Ape Yacht Club NFTs underwent a series of market fluctuations due to the actions of Jeffrey Huang, widely known as Machi Big Brother. He instigated a significant trade activity around the Bored Apes, resulting in over 50 apes changing hands in just a couple of days. Data from NFT marketplace Blur indicates that Huang single-handedly sold 19 Apes in a single transaction for 651 Ethereum, approximately $1.2 million in value.
Bored Ape Yacht Club NFTs Face Market Pressures
Bored Ape Yacht Club NFTs, produced by Yuga Labs, remain one of the most popular NFT collections in the market. Despite this, their floor price has experienced increasing pressure over the past months. This strain reached its peak during Huang’s trading activity, plunging to its lowest Ethereum price point since November 2021.
For context, the floor price of Bored Apes hit its zenith in April 2022 at around 152 Ethereum. However, this revered “blue chip” NFT collection recently witnessed a tumble to about 33 Ethereum or $62,000, as reported by NFT Price Floor.
Bored Ape Yacht Club collection, an assortment of unique digital tokens associated with digital art ownership, boasts a valuation exceeding $737 million. Hence, this places it second only to Crypto Punks in terms of market capitalization.
Bored Ape Yacht Club Collection Regains Ground
The Bored Ape Yacht Club collection saw a recovery on Sunday, following Huang’s purchase of 14 Bored Apes. He paid as much as 41 Ethereum, over $77,000, for a single NFT from the collection. Consequently, the cheapest Bored Ape saw a price bump of 14% within a day, currently costing around $74,000, according to data from NFT Price Floor.
In a move coinciding with his Bored Apes accumulation on Sunday, Huang encouraged a meme competition on Twitter. The tweet showed Huang holding a shotgun and promised the best meme creator would win a Bored Ape.
Defamation Lawsuit Surrounding Huang
Huang’s spotlight on Bored Ape trades comes hot on the heels of a defamation lawsuit revelation. Blockchain investigator ZachXBT, operating under pseudonym, publicized that Huang has brought a defamation lawsuit against him. Moreover, the cause of the lawsuit is an investigative article ZachXBT published the previous year, accusing Huang of misappropriating Ethereum worth tens of millions of dollars from a crypto treasury management platform, co-founded by Huang himself.
ZachXBT refutes the lawsuit as “baseless” and an attack on free speech, amassing over $1 million in donations for his legal defense. Conversely, Huang insists that the allegations are not true and constitute unlawful defamation.