Crypto Community Criticises Yuga Labs’ Auction Model For Its First Bitcoin NFT
Last weekend was a hot one for Yuga Labs as the crypto community criticized how it modeled its first Bitcoin NFT auction. The creator of the Bitcoin NFT Ordinals protocol also expressed displeasure with the model, threatening to wash his hands of it.
Yuga Labs open bids for the “TwelveFold” collection which is a process to enable the inscription of 300 NFT type images in Satoshi using Ordinals. Of the total entries, approximately 288 will be sent to the 288 winning bidders. But the process is apparently unacceptable to both the cryptographic community and the creator of Ordinals.
Yuga Labs’ Bitcoin NFT Auction Template Gets Criticism
Yuga Labs published a Press release describing the auction process. First, bidders will send their bid amount in BTC to an address on Yuba Labs. After the bidding, the winners will pay the amount they bid, while the company will return the BTC of those who did not win.
But the process was not acceptable to the community. Many have pointed out that such a BTC return process for those who manually failed is inappropriate. Giancarlo, a community membercriticized the Yuga Labs modelwondering if they are still in the Stone Age.
another notable tweet from a Twitter account focused on Ordinals, referred to the lawsuit as a “scammers dream”. According to normally, Yuga Labs is setting poor precedence by keeping BTC from bidders and refunding it after the auction. It is commonly believed that scammers will capitalize on this process to steal users’ BTC.
Most importantly, Bitcoin Ordinals creator Casey Rodarmor shared an answer also criticizing the Yuga Labs model. Rodarmor responded more aggressively, stating that Yuga Labs is “f*cking around with degenerate bullshit”.
Ordinal’s creator further warned that if Yuga Labs held such an auction again, it would wash its hands of the project and encourage others to do the same.
Many others, like Ryan Kia, also pointed out the shortcomings of the auction model. Kia stated that the lawsuit would make more money for Yuga Labs, but would not do the crypto community any favors.
Amidst the criticism, some people also pointed out the positive points of the Yuga Labs stage. Normally praised the NFT hub for its effort to use BTC in its auction payout, but lamented that using Bitcoin to set such a bad precedent is not good.
Yuga Labs TwelveFold NFTs to Boost Ordinals
Yuga Labs has made notable progress in the NFT industry through its CryptoPunks collection and Bored Ape Yacht Club. This recent auction is the first Bitcoin Ordinals NFT collection that brings to the market.
The company shared a blog post referring to the collection as a “300-piece original and experimental generative art collection” on the bitcoin blockchain. He further described the collection as including hand-drawn assets and highly rendered 3D elements.
The NFT hub will drive adoption of the Ordinals protocol using bitcoin. Many creators will be thrilled to leverage the immutable, decentralized realm of bitcoin.
Notably, the Yuga Labs tender set to end today, March 6th, has already seen many bidders go bankrupt. According to website, the lowest and highest bid so far is 0.011BTC or $250 and 1.11BTC or $25,000. The criticism so far hasn’t stopped many people from trying to get hold of Yuga’s first Bitcoin collection.
Featured image from Pixabay, chart from TradingView.com