Azuki DAO may sue over $40M mint that looked just like the original

Buyers of the new Azuki collection had complained that the NFTs are too similar to the old ones. Now, their DAO may sue

article-image

ArtemisDiana/Shutterstock modified by Blockworks

share

Community members of Azuki DAO, a newly-formed group surrounding the anime-inspired NFT collection, have initiated a Snapshot proposal seeking to hold the project’s founder to account over allegations of misconduct.

Accusations stem from last month’s release of Azuki’s latest collection, Elementals. Some buyers have expressed frustration over its close resemblance to the original set of Azuki profile pictures (PFPs) sold in early 2022.

Elementals could only be minted by holders of the original Azukis and a side-project BEANZ. The new NFTs, which represented half of a suite of 20,000 PFPs, sold out in 15 minutes.

The sale raised 20,000 ETH ($39.4 million) for Chiru Labs, the LA-based startup behind the NFTs, with a mint price of 2 ETH ($3,900). The floor price for the original Azukis, a set of 10,000 PFPs, is currently 6.3 ETH ($12,400).

“We have only been given a similar profile picture to that of the original Azuki holders and nothing more,” the lawsuit Snapshot proposal reads. “The team is blatantly scamming us with [empty promises].”

The new Azukis, just like the old ones (source: OpenSea).

If passed, the recent Azuki DAO proposal would request a lawyer to file suit against pseudonymous Azuki founder Zagabond for “rugging multiple projects.” Specifics on other projects were not given.

The proposal would also seek a sale refund, with funds directed towards promoting the project’s growth as well as supporting initial research for the lawsuit.

It must be noted that the Azuki DAO is not an official organization. The group says it was formed in support of the project, with its token utilized for voting created over the weekend and airdropped to Azuki holders.

Loading Tweet..
Some community members aren’t totally sold on the unsanctioned Azuki DAO.

Azuki DAO is voting ‘yes’ — for now

The Azuki team addressed buyer backlash on social media last week, stating it “missed the mark,” and that the “mint process was hectic, the PFPs feel similar and, even worse, dilutive to Azuki.”

The floor price for Elementals has dropped almost 70% since the sale, to 0.63 ETH ($1,240), per OpenSea.

“It is absolutely the project’s responsibility to create real products that can generate real revenue from outside markets,” Simon Kertonegoro, CEO of NFT gaming studio MyMetaverse, told Blockworks.

PFPs aside, Azuki, according to Kertonegoro, has never shipped any form of product and is instead relying on its intellectual property and new releases to continuously fund its project in perpetuity.

“We need to normalize crypto and NFT projects as having real business models. They need to serve the wider market,” he added. Blockworks attempted to contact Zagabond over the allegations but did not receive a response. Azuki community members did not immediately respond to requests for comment.

The proposal, which began Sunday and ends Monday, currently shows 88% of voters in favor of hiring a lawyer.

Updated Jul. 3, 2023 at 4:58 am ET: Added context about collection.

Updated Jul. 3, 2023 at 7:08 am ET: Additional context about AzukiDAO.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (11).png

Research

We believe that Exponent is best positioned to dominate the Solana yield market – the fastest-growing sector in the ecosystem – with topline liquidity increasing at an annualized rate of nearly 600%. The founding team (ex-Squads, Kamino, Solana Foundation) cares deeply about product, security, design, and user experience and understands the foundation for building a great protocol. The team’s deep ties in Solana DeFi also present a significant strategic advantage, as evidenced by Exponent PTs being onboarded as collateral on Kamino, Drift, and Loopscale before its main competitor, RateX. In this regard, we view PT integrations in money markets as the most compelling avenue for Exponent to expand its market share and own its vertical.

article-image

Franklin Templeton’s Innovation Head Sandy Kaul says institutions will issue stablecoins and tokenized cash offerings to stay competitive

article-image

Surviving financial doomsday takes some preparation

article-image

Pump.fun’s launch partners include Kraken, Kucoin, Bitget, Bybit, Gate and MEXC

article-image

Monad Foundation’s Keone Hon said the team’s been “thinking about how to grow the onchain economy for some time”

article-image

Cuts to government R&D budgets may prove penny wise, bitcoin foolish

article-image

Still relatively little is known about the memecoin platform’s forthcoming token