Azuki, a major player in the NFT bull market, is following in the footsteps of Pudgy by launching its own ANIME token and has shared detailed tokenomics. The total supply of ANIME is set at 10 billion tokens, with an initial circulating supply of 7.69 billion. Of this, 37.5% will be airdropped to Azuki NFT holders, while the remaining tokens will be allocated for community funds, ecosystem development, and team incentives.

Following the announcement of the ANIME token, prices within the Azuki ecosystem have surged, signaling a rebound in market sentiment. As of the latest update, the floor price of Azuki NFTs has reached 14 ETH, a new high with a daily increase of 17.42%. Other related NFTs in the Azuki ecosystem, such as Beanz and Elementals, have also seen their prices rise, reflecting the market’s optimistic view of Azuki’s future potential.

Azuki’s Rise and Fall: From the Heights to a Sudden Decline

Azuki’s journey has been marked by the founder ZAGABOND’s controversial past and the problematic release of the Elementals series, which have both cast long shadows over the project’s future. ZAGABOND, the figurehead of Azuki, made headlines in May 2022 when he admitted to having participated in—and abandoned—three NFT projects: Crypto Phunk, Tendies, and CryptoZunks. These projects were quickly labeled as “rug pulls” by the community. While ZAGABOND insisted these were simply “learning experiences” and denied any malicious intent, the community was not convinced. As a result, the price of Azuki NFTs dropped dramatically, from around 20 ETH to just 7.39 ETH, shaking investor confidence.

Things took a turn for the worse on June 28, 2023, when Azuki launched its highly anticipated Elementals series. The community hoped this new series would breathe new life into Azuki, but the actual NFTs turned out to be strikingly similar to the original Azuki series, with many repeated images and low-quality designs that undermined the rarity system Azuki had established. This left many loyal supporters, especially those who had invested significant sums into the project, feeling deceived. The floor price of the Elementals series quickly dropped from 2 ETH to 1.32 ETH, and the floor price for the original Azuki NFTs also fell to 9.87 ETH.

These missteps not only fractured the trust within Azuki’s community but also triggered panic selling from large holders. Several prominent Azuki collectors sold off their assets, leading to a further decline in liquidity. To make matters worse, the Azuki team’s response to the crisis was widely seen as lacking sincerity, failing to reassure the community. Despite promises to improve the minting process and address technical issues, these efforts failed to restore trust. Eventually, AzukiDAO even filed a lawsuit against ZAGABOND, attempting to recover a refund of 20,000 ETH. However, the lawsuit was quietly dropped. In November 2023, AzukiDAO announced it was rebranding to “Bean” and transitioning into a memecoin project on the Blast chain.

Yet, driven perhaps by the recent success of the PUDGY token launch or the lessons learned from previous meme projects, Azuki has chosen to make an unconventional return by launching the ANIME token in hopes of reviving the project.

The Shift from NFTs to “Culture” in Azuki’s Strategy

Back on January 6, Azuki’s official account followed and retweeted a post from the Weeb3 Foundation, whose bio read “Building an open metaverse, driven by ANIME.” This sparked speculation in the community that Azuki might be preparing for something new. As Azuki transitioned its focus from NFTs to the ANIME token, it seems that many are beginning to shift their perspectives.

Azuki defines ANIME as a “cultural token”—a movement aimed at transforming 1 billion anime fans into a community-driven creative network. From the beginning, Azuki’s anime-inspired aesthetic laid the groundwork for its future direction. The art style, a blend of traditional Japanese animation with modern trends, has attracted a global audience of crypto art collectors. This unique style has helped Azuki stand out in the crowded NFT market, giving it a strong cultural identity. With the launch of the ANIME token, Azuki aims to further strengthen this cultural narrative. Through its tokenomics, Azuki can incentivize community engagement while sharing the cultural value with a broader audience.

As the market has evolved, the mindset and needs of NFT holders have shifted dramatically. NFTs are no longer just seen as tradable assets—they’ve become a form of identity, a way to represent oneself, especially within specific communities and cultural groups. For many, NFTs have transcended their financial value and are now a key tool for self-expression.

This shift reflects the broader transformation of the NFT market, moving away from early speculative motives to a focus on culture and community. As meme projects continue to rise in popularity, Azuki’s airdrops to communities like Hyperliquid (HYPE stakers), Kaito Yappers, Arbitrum, and others are a great example of how more projects are using these as a means to engage NFT holders, while expanding their ecosystems and increasing their influence for mutual benefit.

Exploring Alternative Growth through Token Launches

The growth that token launches bring to NFT projects is undeniable. For example, Azuki experienced a significant surge in trading volume and floor price during the week surrounding its token release, drawing in more new users and capital. Likewise, the Pudgy Penguins team has already experienced similar growth. Since its token launch, Pudgy’s floor price has consistently stayed above 23 ETH, with the expected Abstract Chain airdrop further solidifying the project’s value. Token issuance not only enhances user participation and fosters a sense of belonging but also opens up additional revenue streams and ensures long-term sustainability for the project. Therefore, the growth generated by token issuance impacts both short-term market trends and long-term project viability through tokenomics. Compared to NFTs, tokens also offer superior liquidity and combinability.

The trend of NFT “revival” provides significant benefits to both the NFT projects themselves and the broader crypto ecosystem, including:

1. Enhancing Cultural Appeal and Brand Value: Ecosystems leverage specific cultural traits to attract users with shared interests, reinforcing community engagement. By giving NFTs clear cultural value and quantifying it through tokens, projects can craft unique brand stories across the ecosystem, boosting market visibility and long-term value.
2. Expanding the User Base and Fostering Cross-Community Collaboration: Attracting a broader audience of cultural enthusiasts, expanding NFTs’ mainstream appeal and breaking through crypto circles’ boundaries. Projects connect with other communities or initiatives through token airdrops, partnerships, and collaborations, creating a larger network effect. The shift from NFTs to interchangeable tokens grants users access to greater liquidity (such as centralized exchanges), significantly expanding their ecosystem reach.
3. Creating Sustainable Value and Iterative Incentive Models: Transforming NFTs from speculative assets to enduring cultural symbols, enhancing both project sustainability and resilience to market fluctuations. Tokenomics can incentivize community engagement, content creation, and unlock new applications like virtual events or IP licensing. For Azuki, the vast anime market represents an area they aim to grow, and tokens act as critical enablers, offering users enhanced returns and experiences.

In conclusion, token launches provide NFT holders with greater rights and rewards, such as governance participation, airdrops, and consumption opportunities within the ecosystem, which boosts community engagement. Additionally, token circulation opens up new income sources, like transaction fees and staking rewards, further supporting ecosystem growth. However, this growth comes with challenges, including the potential impact of token price fluctuations on NFT values and the need to balance token economics with NFT scarcity. Moving forward, NFT projects must strike a balance between token issuance and community culture to realize sustainable, long-term growth.

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