Wednesday, February 28, 2024

Azuki Community Demands Legal Action Against Founder Zagabond Over Alleged ‘Rug Pull’ and Calls for 20,000 ETH Refund

In the volatile realm of the NFT world, controversy is often an inherent part of the game. Recently, a significant dispute has surfaced involving the Azuki team and its founder, Alex Xu, popularly known as Zagabond. The central point of contention is their alleged ‘rug pull’ strategy, employed during the minting of “Azuki Elementals”. This move has deeply upset the project’s steadfast holders. Now, these original Azuki investors, who have unwaveringly backed the brand through all its trials and tribulations, are airing their grievances and advocating for legal measures.

Their grievances stem from the launch of Azuki’s new series, “Azuki Elementals”. Despite the prevailing bear market, the series sold out in under 20 minutes at a price of 2 ETH each, amassing an impressive $38 million. Yet, the event has since been marred with accusations of unfair practices and a precipitous price decline of the original Azuki collection, which plummeted from over 17 ETH just a week ago to a mere 5.8 ETH today.

Numerous problems surfaced during the launch, ranging from grievances about the brief 10-minute window for white-listed Mint, to website overloads leading to Mint failures, and an excessive duplication of features between the original Azuki and the new Azuki Elementals. Investors expressed worry over the potential dilution of the first-generation Azuki’s value. The controversy escalated when the project team reportedly transferred out 20,000 ETH shortly after the launch.

Reacting to this, the Azuki community has taken a stand. They have put forth a proposal, urging the Azuki DAO to hire a lawyer and initiate a lawsuit against Zagabond, accusing him of ‘rugging’ multiple projects.

In addition, they have requested that the Azuki DAO retrieve a refund of 20,000 ETH from the team and utilize it for fostering growth within the Azuki community. The proposed funds would be aimed at incentivizing artists, content creators, and builders, thereby enhancing the ecosystem’s overall prosperity.

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