Industry creators, including the creator of Bitcoin Ordinals, have expressed their criticism towards Yuga labs’ plan to auction its Bitcoin NFTs collection, TwelveFold, that was released recently on the Bitcoin NFTs network.
Since its release, the collection has however, netted $16,5 million in the past 24 hours after it was introduced in the Bitcoin NFTs auction. This success however has garnered heavy criticism from the NFT community with citations of a crude process under which the collection was auctioned.
This criticism is a threat to Yuga labs’ past reputation. The leading creator of NFTs and digital collectibles set out to shape the future of web3 since its launch in the year 2021. During the same year, the company also released its flagship collection that has done relatively well in the past year.
The collection, TwelveFold, contains 300 NFT-like images that have been inscribed on Satoshis with the use of the Bitcoin Ordinals protocol. Yuga Labs then made a rule that the top 288 bidders get to receive 288 images from the TwelveFold collection.
During the auction, participants who wish to gain entry into the bidding process first need to send the entire bid amount in Bitcoin to a unique address controlled by Yuga Labs. After the auction is complete, the successful bidders get to pay their exploits with the amount they bid in Bitcoin while the unsuccessful bidders get a manual refund in Bitcoin for the amount they bid.
This auction process has received ridicule over its inefficiency with some in the crypto community calling it outdated. Some crypto enthusiasts did not mince their words while describing the manual process under which the refunds were made.
A lot of heavy lifters in the community criticized the auction model including the creator of the Bitcoin ordinals protocol who took to twitter calling the auction process a “scammers dream”, and expressing its prevalence to potential misuse by bad actors.
Despite there being huge criticism, a number in the crypto community have applauded Yuga Labs for conducting this action, stating that this move was smart and strategic in bridging the gap between Etherium NFTs and Bitcoin Ordinals.
According to data from the Auction, the top bid was placed at 1.11BTC or an equivalent of 25 000 Dollars while the lowest bid was placed at 0.011BTC or an equivalent of 250 Dollars.
The data has also shown that the collection received a total of 3000 bids in just 24 hours and in the end netting Yuga Labs $16.5 million.
With the end of the Auction, Yuga Labs has managed to attract interest into Bitcoin Ordinals despite all the fuss surrounding the auction process. With digital art and digital collectibles gaining popularity, there are two clear contestants in the NFTs market, Bitcoin Ordinals and Etherium NFTs, as to who gets to capture the larger market share, well the race is still on…
