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NFT collection depreciates 70% after alleged creator call with rug pulls

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The NFT collection azuki collapsed 70% in the last few days, according to data from the OpenSea platform. The price floor of the collection dropped from 30 Ether to 10 ETH.

The fall came after a tweet written by Zagabond, creator of the collection, in which he talks about the future of the Azukis in the market. But a user titled ZachXBT said that Zagabond would have participated in other projects that turned out to be rug pull.

The discussion brought a great deal of controversy and contributed to the downfall of the Azuki. Of the 45% drop, half of it occurred in the last 48 hours. The price floor of the collection dropped close to 10 ETH, but recovered a few hours later.

NFT collection depreciates 70% after alleged creator call with rug pulls

Azuki price drop in the last seven days. Source: OpenSea.

Doubtful history

According to the user, Zagabond would have participated in three projects that did not deliver the promised results. ZachXBT names the three in question by name: CryptoPhunks, Tendies and CryptoZunks. And indeed, Zagabond even mentions CryptoPhunks in his message.

None of the projects achieved significant success in terms of repercussion or sales. But ZachXBT noted that these three projects were three rug pulls. In the case of Tendies, Zagabond would have launched the NFTs and then deleted all social networks and publications.

In the case of CryptoPhunks, the creator would have pocketed up to 300 ETH through fee collection and a subsequent flash loan attack.

In response, Zagabond denied the accusations and published a text counting its trajectory in the market. The creator admitted that he did not deliver the expected return on previous projects, but denied that he applied scams.

He also dismissed any possibility that the Azuki are a rug pull scheme.

“Please read my post in full. We deliver everything that was promised in these collections. Do I wish they had been more successful? Ultimately, the product did not meet market expectations, but that doesn’t mean it was a rug pull,” he said.

Free fall of NFT collections

In its publication, the creator provides explanations for the failure of each of the collections. The Phunks, according to him, were just a parody of the successful CryptoPunks collection. The Tendies project ended after only 15% of NFTs were lied to. CryptoZunks, on the other hand, had limitations arising from the high fees of ETH, which killed users’ experience with NFTs.

April was a bad month for Azuki in terms of ETH. The collection recorded a 56% drop in the price floor within that month, in addition to the 70% registered in the last seven days. To some extent, this larger decline is due to the general fall of the markets, but the founder’s track record also weighed on the devaluation.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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