Yuga Labs, a non-fungible token (NFT) company, received backlash from the cryptocurrency community, including the creator of Bitcoin Ordinals, over flaws in how it conducts its auction for its first Bitcoin NFT collection. The company opened bids on March 5 for its “TwelveFold” collection. It features 300 NFT-like images inscribed on satoshis using the Bitcoin-native Ordinals protocol.
However, the auction process faced criticism for requiring participants to send their entire bid amount in Bitcoin to a unique BTC address controlled by Yuga and manually conducting refunds for unsuccessful bids. That is a backward approach to the decentralized nature of cryptocurrency.
Yuga Labs’ TwelveFold Collection
Yuga Labs’ TwelveFold collection features 300 NFT-like images inscribed on satoshis using the Bitcoin-native Ordinals protocol. In addition, the collection lends more credibility to the Ordinals protocol. With it, artists generate unique numbers for each image in a collection, allowing it to be inscribed on a single satoshi.
The crypto community highly anticipated the collection, given Yuga’s success in creating multiple Ethereum-based NFT collections.
The Auction Process and Criticisms
The auction for TwelveFold opened on March 5, with bids being accepted in Bitcoin only. Participants were required to send their entire bid amount to a unique BTC address controlled by Yuga. Winners would pay the BTC they bid, while Yuga said it would return BTC to those unsuccessful in placing a top bid.
However, the auction process faced criticisms for requiring manual refunds for unsuccessful bids, which some in the crypto community deemed as being in the “stone age.”
The user behind the Ordinals-focused Twitter account, “Ordinally,” called the auction model a “scammers dream” and questioned the way Yuga conducted the auction, stating that it sets a “Terrible precedence.”
Dear @yugalabs,@veryordinally is right. Actions like this prove that for some entities and people: “Once a shitcoiner always a shitcoiner.”
If I, personally, Casey Rodarmor, ever see you, Yuga labs, the entity, fuck around with degenerate bullshit like this again, I will wash… https://t.co/COARsn4X0o
— Casey Rodarmor (@rodarmor) March 6, 2023
Bitcoin Ordinals creator, Casey Rodarmor, weighed in on the discussion, telling Yuga to “get fucked” and calling the conduct of the auction “degenerate bullshit.” He added that he would encourage others to boycott the project if Yuga were to conduct a similar auction.
Other users pointed out the potential for overpayment by bidders due to a significant price discrepancy between the highest and lowest bids in the top 288. However, despite the criticisms, many were happy to see Yuga move into the Bitcoin market. Ordinally even tweeted appreciation for Yuga’s efforts to bridge it to Bitcoin.
Responses from the Crypto Community
While the auction process faced criticisms, many in the crypto community expressed excitement for Yuga’s first Bitcoin NFT collection.
Ordinal Pizza OG, an Ordinals-based collection, called Yuga’s BTC collection a “massive net positive for Ordinals.” The criticisms weren’t enough to stop cashed-up bidders from trying to secure a top spot in the auction.
Conclusion
Yuga Labs’ first Bitcoin NFT collection faced backlash from the crypto community over flaws in its auction process. Despite the backlash, the top bid is currently 2 BTC. To receive funds back after an unsuccessful bid, users must use an empty self-custodial Taproot wallet as their receiving address.
None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.
