They actually came together to coordinate a lawsuit against the publishers of the Azuki Elementals NFTs. But instead of getting a $38 million refund, hackers stole the first one few days old DAO another 35 ETH. Equivalent: 70,000 US dollars. However, this does not stop the group from taking action against the project team.
That’s why investors feel cheated
A new NFT collection from Chiro Labs triggered a real scandal in the NFT community. Because the long-awaited “Elementals” are optical “basically identical” with the already established Azuki collection. When the works of art were unveiled, investors were outraged.
ONE IS AN AZUKI AND ONE IS AN ELEMENTAL…. OMG … WHAT THE FCKKKKKKKKKK … I am down so much fucking money man …. FUCKKKKNN pic.twitter.com/KGFyEipXzb
— Wizard Of SoHo (🍷,🍷) (@wizardofsoho) June 27, 2023
Two ETH (about 3,800 US dollars) cost one of the pictures in the presale. Chiru Labs sold 10,000 copies this way. Another 10,000 images were earmarked for owners of in-house NFTs Azuki and Beanz. The collection was sold out in less than 15 minutes. Shortly after the unveiling, prices collapsed. The floor price for one of the images is currently 1.07 ETH on the NFT platform OpenSea.
Disappointed owner Azuki DAO hacked
A short time later, a group of 74 Elementals owners banded together to take action against the publishers, demanding a refund of their funds. To organize themselves, they founded the “Azuki-DAO”. The self-proclaimed “Diamond Azuki Holders” claim to have sunk millions into the project and accuse Chiru Labs of “blatant fraud”.
Yesterday, July 3rd, the majority of the group decided to hire a lawyer to sue pseudonymous Azuki founder Zagabond. But shortly thereafter, two attackers managed to steal 35 ETH from a DAO smart contract. The Azuki DAO confirmed the loss of almost 70,000 US dollars to the news portal Decrypt.
The vulnerability should now be fixed. The DAO wants to take further action against Zagabond and Chiru Labs. However, for parts of the NFT community, the Azuki DAO is in the criticism. The relatively small group acts as a representative of the community.
Also the Prices of the original Azuki series collapsed due to what happened. From an average of 17 ETH to 7 ETH – within a month.