Azuki NFTs: A Dramatic Plunge in Floor Prices Sparks Investor Outrage

In a dramatic turn of events, the Azuki NFT collection has seen its floor price plummet following the recent Elementals sale. Despite a promising start, the project has left investors grappling with losses averaging around $21,500 per NFT, sparking widespread discontent.

Azuki NFTs: A Dramatic Plunge in Floor Prices Sparks Investor Outrage

In the volatile world of NFTs, the Azuki collection has emerged as a cautionary tale. Once hailed as a promising venture, the project has seen its fortunes reverse dramatically. The floor price, or the lowest available price in the collection, has taken a nosedive from 17 ether ($33,300) to a mere 6 ether ($11,800), according to data from OpenSea.

An increase in sales has pushed the Azuki floor price lower following the Elementals sale. Image: OpenSea.

Elementals Collection: A Failed Promise

The Elementals collection, which was exclusively sold to Azuki NFT holders before the public sale, has not fared any better. These NFTs, which started at a price of 2 ether, were expected to decrease over time during the dutch auction. However, they opened at a floor price of just 1.6 ether ($3,100) post-sale, which has now fallen to 0.84 ether ($1,600).

Investor Outrage

This sharp decline has left investors reeling, with losses averaging around 11 ether ($21,600) for each of their main NFTs and 1.15 ether ($2,250) for each NFT they bought in the recent sale. The wave of disappointment among holders has been palpable, with many expressing their frustration publicly. Among them is DeFiance Capital founder Arthur Cheong, a former Azuki supporter, who is now selling his collection of four rare NFTs.

There was a huge increase in transaction volume as the Azuki floor price crashed. Image: Nansen.

Azuki's Response

Despite the falling prices, the Azuki project managed to rake in $37.5 million from the Elementals sale. It continues to earn royalties from secondary NFT marketplaces, although the effective royalty rate dropped towards the end of 2022, and royalties have significantly decreased in volume.

Azuki has acknowledged its missteps with the Elementals sale and expressed a desire to rectify the situation. However, the path to recovery remains uncertain, and the crypto community watches with bated breath as the drama unfolds.

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