Crypto Community Criticises Yuga Labs’ Auction Model For Its First Bitcoin NFT

Last weekend was hot for Yuga Labs as the crypto community criticized how it modeled its first Bitcoin NFT auction. The creator of the Bitcoin NFT protocol Ordinals also expressed displeasure at the model, threatening to wash his hands off.

Yuga Labs opened the bids for the “TwelveFold” collection which is a process to enable 300 NFT-like images inscription on Satoshis using Ordinals. Around 288 out of the total inscriptions will be sent to the highest 288 winning bidders. But the process is seemingly unacceptable to the crypto community and the Ordinals creator. 

Yuga Labs’ Bitcoin NFT Auction Model Receives Criticism

Yuga Labs published a press release outlining the auction process. First, the bidders will send their bid amount in BTC to an address under Yuba Labs. After the bidding, the winners will pay the amount they bid, while the firm will return the BTC of those who didn’t win. 

But the process has not been acceptable to the community. Many pointed out that such a process of returning BTC to those who failed manually is inappropriate. Giancarlo, a community member, criticized the Yuga Labs model, asking if they’re still in the Stone Age. 

Another notable tweet from an Ordinals-focused Twitter account referred to the process as a “scammers dream.” According to ordinally, Yuga Labs is setting bad precedence by holding bidders’ BTC and refunding after the auction. Ordinally believes that scammers will capitalize on this process to steal users’ BTC. 

Most importantly, the Bitcoin Ordinals creator, Casey Rodarmor, shared a response also criticizing the Yuga Labs model. Rodarmor responded more aggressively, stating that Yuga Labs is “f*cking around with degenerate bullshit.”  

The Ordinal creator further warned that if Yuga Labs ever conducts such an auction again, he will wash his hands off the project and encourage others to do the same.

Many others, such as Ryan Kia, also pointed out the shortcomings of the auction model. Kia stated that the process would make more money for Yuga Labs but would not favor the crypto community. 

Amid the criticisms, some people also pointed out the good points of Yuga Labs’ step. Ordinally commended the NFT hub for its effort to use BTC in its auction payment but lamented that using Bitcoin to set such bad precedence is not good.

Yuga Labs TwelveFold NFTs To Boost Ordinals

Yuga Labs made remarkable progress in the NFT sector through its CryptoPunks and Bored Ape Yacht Club collection. This recent auction is the first Bitcoin Ordinals NFT collection it brings to the marketplace.

The firm shared a blog post referring to the collection as an “Original and experimental 300-piece generative art collection” on the bitcoin blockchain. It further described the collection as including hand-drawn features and highly-rendered 3D elements.

The NFT hub will boost the adoption of the Ordinals protocol by using bitcoin. Many creators will be excited to leverage the immutable decentralized bitcoin realm.

Notably, the Yuga Labs bidding slated to end today, March 6, has seen many crashed-up bidders already. According to the website, the lowest and highest bid so far is 0.011BTC or $250 and 1.11BTC or $25,000. The criticisms so far haven’t stopped many people from trying to get Yuga’s first Bitcoin collection. 

Featured image from Pixabay, chart from TradingView.com