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40 MILLION NFT Madness
Last Updated: June 28, 2023
✓ Fact Checked
GM Readers!📪 It's BitDegree Insider, and let's take one step at a time.
⭐️Today's selection:
- 🖍NFT Madness
- 🧋Wednesday Bubbles
- 👌Selected Meme of The Day
- 📰Bite-Sized News
NFT MADNESS
So, here's a headline: $40M raised for the same NFTs. Triumph or Disaster?
Ok, what's up?
There's a company that's entirely dependant on the NFT PFP (profile picture) that they create. It's called Azuki.
The cornerstone of Azuki company's business model is the revenue they generate from royalties associated with their non-fungible token (NFT) offerings, which are also PFP
These PFPs have become blue chip: the most valuable in the NFT market and generally always at the top by volume.
Lately, crypto Twitter was in complete euphoria about the project, especially since they planned something epic for the summer!
Firstly, they held a successful offline event in Vegas!
And during it, they announced their 3rd NFT collection: Elementals.
What could possibly go wrong? Well… the demand for it was HIGH. And it resulted in the fact that…
Azuki holders had about 10 minutes to mint their new NFTs.
This overloaded the website with traffic causing the site to have errors.
Which prevented many people from minting.
Even some of the biggest Azuki whales weren't able to get in.
Well, the collection HAS SOLD OUT IN PRESALE anyway!!!
Which resulted in raising 20K $ETH (~$37,504,000) for the project.
But that only became a precursor to something unexpected.
Namely, an art reveal was to follow sometime after the sale.
And the thing is, no one knew what would happen, what exactly would be behind the curtains; there was absolutely no sneak peek.
Everyone just trusted the Azuki brand.
And, as it turned out, they were disappointed that everything from Azuki looked as if it was created by… Azuki.
The Elementals art reveal was shocking.
Many of the Azuki Elementals look exactly like the original Azuki NFTs.
No one expected a copy of the first collection, just with new traits added...especially for such a price (2 ETH).
This decreased the demand for Azuki (the previous, original collection).
Why spend 10 ETH on an Azuki when you can spend 1.5 ETH on an Elemental and get a PFP that looks pretty much the same?
So, this created looooots of memes, and we gathered the best for you!
And check the Selected meme of the day for the final one!
Moreover, there appeared to be issues with duplicates due to metadata settings issues, and some of the revealed pictures appeared to be with artifacts that did not fit the picture.
It was a mess.
As well as it dropped the price for all the collections.
Yet, at least Web3 devs are happy!
Since smart contracts are getting better and better no matter what.
In comparison with 2021: the mint itself is not as expensive as before.
No matter how you spin it, Azuki extracted $40M in mint funds from their own holders, while kinda were willing to invite new people.
The acquisition of new people appeared to be due to the fact that prices dropped heavily.
Even before, they raised millions from mint and another 30M from VC funding.
Some people started to be paranoid a bit, as comments like: "it is a marketing move!" or "Pictures will be completely updated!" and "something gonna be else for sure", were seen all over the place.
Well.. This hasn't yet been confirmed.
Did the Azuki team share some comments?
Well… They're sorry. They recognize the fact that the event wasn't smooth. At all.
Well, they have tackled issues before in a great way.
It may work eventually, and most likely such things from the community's perspective will be forgiven after time.
Are bluechip bagholders still in disbelief?
Keep in mind, what happened with Azuki doesn't make the whole NFT sector bad… competition for the top collections will be tight for sure!
After all, Azuki are working on their own anime series and needed some funds.
But… Everyone agrees that things better become organized in a more optimized way!
Tomorrow, we will take a look at how others are doing it in a coherent way already. Here's a hint: 🐧
TL;DR: Azuki, a company reliant on NFT profile pictures, raised $40 million through their latest NFT collection sale, but disappointed their holders with artwork that looked similar to their previous collection, causing a drop in demand and prices. Despite the issues, Azuki's team acknowledged the problems and may be able to recover over time, emphasizing the need for better organization in the NFT sector.
WEDNESDAY BUBBLES
Here's a view for you.
Firstly, Blur token rocketed by 26% after listing on Korean Exchange Upbit yesterday. By today, the price came back nearly to the same level.
Then, OP doesn't look that optimistic, however, the Bedrock update has increased the number of transactions on Optimism by 67%.
Their number has grown from 300,000 to more than 500,000 per day. Meanwhile, the gas fee has halved.
Additionally, Optimism itself is changing its name to OP Mainnet.
Why? What was wrong with the original one?
It's all done to ensure everyone keeps in mind that this is the main network of the entire Superchain by OP.
Although it was already pretty clear to everyone, they seem to be up to something. Well, let's wish for the best.
Compared to zkSync, which is already in mainnet and is also a Layer-2, it opposed the OP-Superchain with its name – ZK Stack!
Networks based on the ZK Stack will have maximum compatibility and overall liquidity, just like Polygon 2.0.
And the entire ecosystem of networks around zkSync will be called Hyperchain.
From all this movement, the biggest winner is, of course, Ethereum (as the center of the entire ecosystem) and ETH token of course.
Also… What is up with FTT???
On June 26th, FTX published a bankruptcy report stating that the exchange's new management managed to recover $7 billion in liquid assets.
This amount is sufficient to repay a significant portion of the exchange's liabilities to its clients.
Rumors have also begun circulating that the bankrupt crypto exchange FTX is in preliminary talks with investors about relaunching the exchange.
Amid positive news, FTT is showing significant growth, and deceived clients are regaining hope to recover their funds.
What a time to be alive!
SELECTED MEME OF THE DAY
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