The proposal to sue the founder received 88.35% of the votes in favor. Does Azuki have a future?

Author丨Morii

EDIT丨Marco

Techub News Original (ID: TechubNews)

**Azuki is playing out the story of the founder being banished from the community. **

1. Prosecution proposal passed

After Chiru Labs, the Azuki developer team, transferred 20,000 ETH from the Elementals auction to coinbase prime, on July 1, community diamond members successively established 20,000E DAO and Azuki DAO, and initiated proposals in snapshot.

The content of the proposal is as follows:

1. Hire a lawyer to file a lawsuit against Zagabond, accusing its multiple projects of running away;

2. Recover 20,000 ETH from the team and distribute it to DAO for community development and provide incentives for artists, content creators and builders;

3. Azuki DAO provides financial support for 20000E DAO, and the funds will be used to establish a litigation research team.

On July 3, the proposal passed with a support rate of 88.35%.

Jeremy Cahen, founder of NFT platform Not Larva Labs, tweeted: "I would be happy to help Azuki DAO take legal action against Azuki co-founder Zagabond. He is a pathological liar and serial criminal. My colleagues and I spent a year Too much time to track him down to recover the $3M worth of USDC he defrauded. He and his team have fraudulently defrauded over $100M worth of funds from our community. I would love to testify in court about all this , I also have full personal information on many of the team members involved in these scams."

On July 3, Techub News asked Jeremy Cahen to confirm the specific information he said on Twitter, but did not get a reply.

2. The founder of Azuki was accused of running offenders

In fact, Jeremy Cahen's irony of Azuki founder Zagabond has never stopped. At the beginning of this year, when Azuki released the New Year anime video, Jeremy Cahen tweeted that although Zagabond is a repeat offender, Azuki might not, because this time he took an anime for Azuki.

Jeremy Cahen was regarded as a community enemy by community supporters for repeatedly mocking Azuki.

Jeremy Cahen’s habitual offender refers to the fact that Zagabond created three NFT projects, CryptoPhunks, Tendies, and CryptoZunks, before founding Azuki, but they all rugged after a few weeks of operation.

Rug refers to the fact that after the project took off, the founders of the project sold their shares and then abandoned the project in order to withdraw all funds from investors, which is running away in the context of Mandarin.

For example, CryptoPhunks, which was established in 2021, is a royalty-free NFT project, which is only one letter away from the famous NFT project CryptoPunks. The initial royalty-free decentralized project was the narrative point. According to Twitter user @huckleberrygump, not long after the project was established, Zagabond first changed the royalties to 5%, and then raised the price of NFT through "washing transactions", thereby obtaining more than $3 million in profits.

"Wash trading" refers to the buying and selling of the same asset in rapid succession in order to drive up prices.

"Then the project was over," wrote @huckleberrygump.

CryptoPhunks new team member **Chopper** once disclosed that on the 68th day after the royalties were changed, Zagabond converted more than 310 ETH to USDC on the exchange. The royalties were reset to 0% again shortly after.

Similarly, Tendies and CryptoZunks are also NFT projects that were ended shortly after they started.

On May 9, 2022, Zagabond wrote an article titled "A Builder's Journey" in response to these doubts. In the article, he admitted that he was the creator of the three projects CryptoPhunks, Tendies, and CryptoZunks, but in the end they all wanted to find the way for Azuki's success.

Unexpectedly, as soon as the article was published, it caused an uproar. The market did not buy his rhetoric. The floor price of Azuki dropped from 17 ETH to 12 ETH, and the Azuki companion series BEANZ fell from about 2.5 ETH to 1.35 ETH.

While accusing Zagabond of having a rug history, it was discovered that he still retained the management rights of the smart contracts of the first three projects while running Azuki.

In order to calm the storm, Zagabond announced that it will transfer the ownership of the smart contracts of the first three projects. However, he denies accusations such as wash trading.

With the influence of the two brands of Azuki and BEANZ and the loyalty of the community, one day later, the reserve price of Azuki rose back to 15.5 ETH, the reserve price of BEANZ rose to 2.15 ETH, and the transaction volume within 24 hours exceeded 10,000 ETH.

But this time, the passage of the prosecution proposal means that Zagabond has completely lost the trust of the community.

3. Can the prosecution be successful?

In fact, Jeremy Cahen probably knows best how much it will cost 20000E DAO and Azuki DAO to successfully sue Zagabond.

Jeremy Cahen (@pauly) and artist Ryder Ripps imitated Bored Ape Yacht Club and released a set of NFT called Ryder Ripps Bored Ape Yacht Club (RR/BAYC) to satirize Bored Ape Yacht Club's fascist tendencies and racism. Bored Ape Yuga labs, the official team of the Yacht Club, is suing for trademark infringement.

According to the judgment issued by the U.S. District Court of California on August 15, 2022, Yuga labs’ lawsuit regarding trademark infringement was dismissed.

Jeremy Cahen said on Twitter that Yuga labs, which is worth $4 billion, will pay all its legal fees, and by then, Yuga labs may go bankrupt.

Netizens asked him how much he actually spent on Twitter, but Cahen didn't respond.

@CancelledPapi said that as a web3 lawyer, he is familiar with copyright law, bankruptcy law, securities law, and even worked in the US SEC. It is a difficult challenge for the community to sue Zagabond successfully. For himself, if he got the job, he had to become a developer first.

Meanwhile, some crypto enthusiasts are questioning the authenticity and intentions of Azuki DAO.

Nfty Finance founder @Tytaninc tweeted: "Voting tokens were minted two days ago." That is, they may not be voting with Azuki or BEANZ, or even holding Azuki or BEANZ It can be seen.

At the same time, some netizens accused Jeremy Cahen of having a history of improper profit-seeking in token transactions, so his evidence is not very credible.