The founder of the popular Azuki NFT collection, known under the pseudonym Zagabond, has promised to compensate disappointed investors. These investors lost their funds after Zagabond abandoned three crypto projects that were later revealed to be alleged “carpet pulls”.
“I failed”, tweeted Zagabond. “I realized my mistakes in the way I handled previous projects I had started. To the communities I failed, to the Azuki owners and to those who believed in me – I’m really sorry. “
Earlier, the founder explained how he built and then left the three NFT collections CryptoPhunks, Tendies and CryptoZunks. About a long blog postsportraying himself as an experimental crypto-entrepreneur, Zagabond said CryptoPhunks, a derivative of Larva Labs CryptoPunks, was a “parody collection.”
Tendies, which mimic the ordering of chicken tenders at a fast food restaurant, were “closed” after only 15% of the collection was extracted. “We did everything we could to get the project forward,” Zagabond said. “Eventually, we realized that even though memes are powerful, they can only get us this far.”
Zagabond has abandoned its third project CryptoZunks due to “lack of demand”. He also became aware of “limitations of the project that exist on Ethereum (ETH) due to the high gas costs and ruin the product experience”. He explained that less than 15% of the free airdrop was taken because the gas charges were too high.
Zagabond reportedly earned $ 3 million in profits from its failed projects
Following the confession, several Twitter users accused Zagabond of “carpeting.” On-chain cryptodetector ZachXBT claimedthat the founder of Azuki NFTs earned up to $ 3 million over a two-month period on his three failed projects.
On Twitter, ZachXBT wrote:
“When you find several cases of negligence, I would say that it is reasonable to call a project a ‘carpet pull’. A project has failed when one has really tried and it still does not succeed.”
A blanket pull is when crypto developers launch a new project and people buy the token before the founders go with the money. Azuki’s founder left his projects just a few weeks after the announcement. No contracts or other information were passed on to the community.
Zagabond, who initially denied the allegations of carpet pulling, now wants to rectify things. He wants to pay everything back to the investors who lost their money because of his actions.
He admitted that more transparency and communication on CryptoPhunks, Tendies and CryptoZunks would have been important. “We will hand over full control of the contracts to the communities in the previous projects and find the right path to a fair distribution of funds. We will publish a detailed plan as soon as possible and contact the project managers. ”
Azuki prices fall 60%
Azuki is an NFT collection of 10,000 anime characters created for Metaverse. The avatars give the owners access to the so-called “The Garden”. “The Garden” is an exclusive virtual world where “Web3 enthusiasts, artists and developers come together to create a decentralized future”.
When the collection was released on the Ethereum blockchain in January, it generated more than $ 300 million in sales. It temporarily overshadowed the popular Bored Ape Yacht Club (BAYC) and CryptoPunk collections.
However, the floor price or starting price of Azuki NFTs fell sharply after the unveiling of Zagabond. It dropped almost 50% from just under 20 ETH ($ 41,800 at the time) to around 11 ETH, or $ 24,000. At the time of writing, the price had fallen 53% over the past 24 hours to an average of 10 ETH. Azuki has fallen 67% from 31 ETH on May 3, according to FlipsFinance.
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