Chapter 1: The Rise and Fall of Azuki

The Azuki NFT collection has made significant waves in the NFT ecosystem, largely due to its innovative approach, including the introduction of the ERC721A contract. Although I don’t own any Azuki NFTs, I’ve observed the fallout from their recent minting event, which has stirred intense discussions on social media platforms, particularly Twitter. The aftermath is far from favorable, and it showcases how they mismanaged their brand in three critical ways.

Step One: Overlooking Art Quality and Responsibility

While there are successful NFT communities out there, like the MFers, whose art might be considered low-effort, there’s a distinction. The MFers were originally unique, whereas Azuki’s recent Elementals release has drawn significant criticism for lacking originality. Many have noted that the new Elementals art is alarmingly similar to the original Azuki set.

The feedback highlighted issues with generative art traits not aligning correctly, but the primary concern was the redundancy in the designs. Observers on Twitter have pointed out striking similarities, which raises questions about the team's creative direction. The key takeaway here is that when expanding a brand, offering variations that are too similar can lead to disillusionment among supporters. It’s troubling that a leading team would overlook such an obvious pitfall.

Step Two: Failing to Adhere to Generative Art Coding Standards

Not only was the Elementals collection criticized for its visual similarities to previous releases, but there were also reports of identical pieces within the set. This has been a recurring theme in high-profile NFT projects, yet it appears to be neglected by many developers. Addressing issues related to duplicate pieces is straightforward in generative coding, and it’s unfortunate that this fundamental aspect was not prioritized.

Step Three: Disappointing the Community While Generating $40 Million

Compounding these issues, the Elementals collection reportedly generated around $40 million in revenue, a figure that has sparked controversy. The collection was sold exclusively to existing Azuki community members and did not reach a public sale.

Here’s a link to their announcement: [Azuki Announcement](#).

As a result of these missteps, the value of Azuki's original set has plummeted. Previously, it held a floor price of 14-16 ETH, but it has now dropped to just under 9 ETH, leading to a staggering loss in market valuation—around $100 million. Additionally, the Elementals, minted at 2 ETH each, are now trading around 1.5 ETH, resulting in substantial losses for early adopters.

The bottom line is that Azuki drained a significant amount of money from their community, leaving many in the lurch. This mismanagement serves as a reminder of the importance of maintaining community trust and delivering quality in the NFT space.

Chapter 2: Lessons Learned

This incident isn’t merely an example of failure in the NFT world; it underscores the critical importance of maintaining high standards and listening to community feedback. As the NFT landscape evolves, it’s imperative for brands to learn from these mistakes to build sustainable, engaged communities.