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AzukiDAO plans to recover 20,000 ETH from Zagabond

A new decentralised autonomous organisation (DAO) that claims to be made up of a “committed group of Azuki enthusiasts” has proposed taking 20,000 Ether back from Zagabond, the creator of the well-known nonfungible token (NFT) company Azuki.

The July 2 proposal involves paying a lawyer to file a lawsuit against Zagabond, the original name Alex Xu, for illegally “operating” several enterprises. 

Moreover, the recovery demands $39 million in ETH that was made from the disputable “Elementals” NFT collection launch by Azuki. The plan is to return any cash recovered to the DAO in order to ” foster the advancement of the entire Azuki community.”

At the time of writing this article, 88.35% of AzukiDAO (BEAN) tokens had been used to support the action, while 11.65% had been used to oppose it. The deadline for the proposal is July 3 at 6:38 UTC.

Although AzukiDAO asserts to be composed of “OG Azuki holders,” others have questioned the DAO’s origin and its connection to the Azuki project’s participants.

AzukiDAO plans to recover 20,000 ETH from Zagabond
AzukiDAO plans to recover 20,000 ETH from Zagabond

An anonymous blogger named Tytan.ETH told his 19,000 followers on Twitter on July 3 that the majority of Azuki holders had never heard of the AzukiDAO and believed it to be “either false or a group with bad intentions.”

According to data from Etherscan, the BEAN token contract that would be utilised for voting on the proposal was just formed two days ago, while the related Twitter handle was only established in June 2023 and its Discord channel has only 116 members.

According to Zagabond, AzukiDAO is a “unknown organisation” that “doesn’t seem to be genuine.”

In the meantime, in response to a series of inquiries about the company, an AzukiDAO official said they “desire not to provide private financial details.”

Since the contentious release of its Azuki Elementals collection on June 27, the Azuki team has come under heavy fire from both NFT holders and industry experts.

A tiny portion of the 20,000 NFTs were airdropped to a limited number of Azuki holders on June 23 amid an Azuki-branded event held in Las Vegas.

On June 27, at 4 p.m., the last of the NFTs went on sale. Azuki NFT holders and owners of “BEANZ” (another derivative project) were allowed a 20-minute presale opportunity.

The whole collection was purchased in less than 15 minutes in private sales; hence the sale was never made public. The Azuki crew received $38 million overall from the launch.

This sparked a large-scale backlash, with complaints such as short presale window to mint failures caused by a busy website, to the lack of uniqueness in the new NFTs art.

NFT owners also voiced concern that the release of 20,000 new NFTs would diminish the value of the collection’s already-existing NFTs. The debate reached its height, when the project staff allegedly moved 20,000 ETH from the wallet soon after the collection was exhausted.

Read more:

NFT market falls after Azuki Elementals backlash

 

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