As NFT industry analysts, we’ve seen few projects generate the type of meteoric rise and fall from grace that Azuki has experienced since its 2022 launch. Keep on reading as we answer what is Azuki NFT and how it went from a hyped-up start-up to a controversial project.
Summary
Azuki was conceived by the mysterious Chiru Labs as an collection of 10,000 avatar NFTs that could provide exclusive benefits to holders while expanding into a centralized consumer brand over time. After hitting the ground running with an instantly sold-out launch and $300 million in early trading volume, allegations around the founder’s checkered past hampered trust and value.
What is Azuki NFT?
Azuki is a collection of 10,000 unique digital avatars minted on the Ethereum blockchain. First released on January 12th, 2022, each Azuki NFT was sold for 1 ETH during a public sale.
The artwork features an anime-inspired aesthetic, with Azuki avatars encompassing various character archetypes like samurais, ninjas, and skateboarders. Owners can use their Azukis as profile pictures and identities across internet communities and metaverse environments.
Beyond just being PFP NFTs, Azukis also double as membership cards for a club called The Garden. Azuki NFT holders gain access to exclusive brand drops, events, merch, and more through The Garden initiatives.
Who Created Azuki?
Behind Azuki is Chiru Labs, an anonymous group of artists and developers based in Los Angeles. The startup was founded by Zagabond, an ex-big tech entrepreneur.
Other notable members on the Chiru Labs team include:
- 2pm.flow – Artist
- location tba – Developer
- HoshiBoy – Artist
Despite an initial lack of background information on the Chiru Labs founders, Zagabond later revealed his involvement in several past NFT ventures like CryptoPhunks and CryptoZunks. This admission sparked controversy within the Azuki community (more below).
The Rollercoaster Ride of Azuki NFTs
January 2022
- Azuki mints 10,000 NFTs and instantly sells out the entire collection at launch for 1 ETH per NFT
- Generates ~$29 million in sales for Chiru Labs
- Early hype and endorsements from influencers fuel demand
January – April 2022
- Azuki floor price climbs into the double-digit ETH range
- Trading volume on secondary sales exceeds $300 million in the first few months
- Solidifies position as a top avatar NFT project
- Azuki mints 20,000 free Azuki Bean NFTs and airdrops to Azuki holders
- Beans become a vital part of the broader Azuki ecosystem
- Floor price for Beans reaches 2-3 ETH
May 2022
- Zagabond reveals involvement in past failed NFT projects like CryptoPhunks
- Community upset over lack of transparency and abandoning projects
- Azuki floor price crashes over 50% almost overnight
- Critics allege rug pull and insider trading
Early 2023
- Azuki launches Hilumia metaverse for holders
- Gives holders digital real estate and gamified experiences
- No formal plans yet for future metaverse expansion
- Partnership formed with major IP Line Friends brand
- Chance to expand Azuki IP reach beyond the crypto space
- Merch and real-world activations imminent
Present
- Despite rocky moments, established as a top NFT brand
- Future plans to bridge the digital community with consumer brand
What Makes Azuki Unique?
A big reason behind Azuki’s distinctiveness is its fine-tuned anime aesthetic that sets it apart from competitors. While anime-styled NFTs have become more commonplace, Azuki struck at the right time to carve its own niche.
Azuki also differentiated itself by emphasizing community-building and exclusive benefits for NFT holders. Owning an Azuki unlocks access to brand collaborations, events, merch drops, and more through the Azuki ecosystem.
Compared to similar profile picture collections like Milady NFT or Bored Ape Yacht Club, Azuki delivers additional perks and utility to make holding the NFTs worthwhile in the long run.
How Azuki Works
The Azuki collection consists of 10,000 unique avatars with varying visual traits. Over 150 traits made up of clothing, facial expressions, accessories, and more can appear across Azukis. Some traits are rarer, making Azukis that have them more valuable to collectors.
The metadata behind Azuki NFTs allows for interoperability with metaverse environments. By importing an Azuki into a virtual world, the art and metadata get translated into a 3D avatar for users.
On the blockchain layer, Azukis are minted on Ethereum as ERC-721 tokens and use smart contracts to enable trading on NFT marketplaces like OpenSea. Owners can list and sell their Azukis for ETH or USD stablecoins.
Is Azuki a Good Investment in 2024 and Beyond?
For pure financial investments, Azuki NFTs are likely too volatile and unpredictable to justify. However, for diehard fans of anime art and culture, owning an Azuki can provide social clout and access worth the high buy-in costs.
As Azuki pushes towards becoming an influential consumer brand both online and in the real world, the benefits of holding these NFTs will only expand over time. We expect the creative team to continue deploying capital into connecting Azuki’s digital origins with more mainstream pop culture and products.
The Risks of Investing in Azuki NFTs
The biggest risk with Azuki NFTs is relying solely on speculative demand to derive value, making large price swings inevitable. For example, when controversy around the founders emerged, some Azuki NFTs lost over 50% of their value overnight.
There is also the risk of the Azuki team failing to deliver on grand promises about future benefits and utility for NFT holders. Like many ambitious roadmaps in crypto, plans could get hindered by hurdles with development, funding, or community building.
Insider trading has plagued previous Azuki collection reveals as well, damaging trust levels around the project’s openings. While Azuki claims to have increased security, insider exploits remain an ongoing possibility.
The Future Roadmap for Azuki NFTs
In the near term roadmap, Azuki will be focused on expanding the Hilumia metaverse and rolling out additional brand collaborations, especially with their latest partnership with Line Friends.
There will also likely be continued experiments around decentralizing Azuki’s IP, similar to the Bobu the Bean Farmer NFT governance initiative. Granting more community control and ownership for the future direction of Azuki makes sense given their Web3 ethos.
Further out, Azuki will work towards its goal of bridging the divide between a niche NFT collection and a globally recognizable consumer brand and metaverse. The team has the funding and talent to potentially achieve this grand vision.
Conclusion
Despite bumps along its journey, Azuki has solidified itself as a bluechip NFT project with a bright future. With strong community loyalty, continually expanding benefits and experiences, and more mainstream partnerships coming, Azuki looks poised to achieve its ambitious dreams of decentralized brand dominance both online and off.
FAQs
Who is behind Azuki NFT?
Azuki is created by the Chiru Labs startup based in LA, led by pseudonymous founder Zagabond and three other anonymous artists/developers.
How many Azuki NFTs exist?
There is a fixed supply of 10,000 Azuki NFTs, each with unique visual traits generated algorithmically.
What blockchain is Azuki built on?
Azuki NFTs are ERC-721 tokens minted on the Ethereum blockchain.
What can you do with Azuki NFTs?
Azuki holders can use them as avatars, access exclusive brand drops, get airdrops of new collections, attend events, and more perks.
What is the current floor price of Azuki?
As of February 2024, the floor price for Azuki NFTs is around 15 ETH or $20,0659.
