Nonfungible token (NFT) company Yuga Labs faces criticism from the cryptocurrency community, including the creator of Bitcoin Ordinals, over how it plans to auction its new Bitcoin NFT collection.
On March 5, Yuga opened bids for its “TwelveFold” collection, which will see 300 NFT-like images inscribed on satoshis using the Bitcoin-native Ordinals protocol, with 288 from the collection sent to the highest 288 bidders.
The auction for TwelveFold has begun and will conclude on the block immediately prior to 3pm PT tomorrow, March 6th, 2023. Good luck.https://t.co/gvl8IHpekC pic.twitter.com/xGWU9jdCoO
— Yuga Labs (@yugalabs) March 5, 2023
According to a March 5 press release, those participating in the bidding process must send their entire bid amount in Bitcoin (BTC) to a unique BTC address controlled by Yuga. Winners would simply pay up the BTC they bid, while Yuga said it would return BTC to those unsuccessful in placing a top bid.
However, such a plan has earned the ire of some within the crypto community, with some pointing out that having to conduct refunds for unsuccessful bids manually is like the “stone age.”
so the way yugas auction will work tomorrow is everyone sends Bitcoin to one wallet and if you lose the bid they promise to manually send it back
likely tens of millions of dollars
we’re still in the stone age
— Giancarlo (@GiancarloChaux) March 5, 2023
The user behind an Ordinals-focused Twitter account “ordinally” called the auction model a “scammers dream,” adding while they doubt Yuga would keep the BTC from failed bids, the way it carries out the auction sets a “REALLY bad precedence.”
Yuga is establishing REALLY bad precedence running an auction like this. They are taking custody of bidders’ bitcoin with a promise to send back unsuccessful bids. Not doubting they’ll do that, but this model is a scammer’s dream, and credible players need to set better example.
— ordinally (@veryordinally) March 6, 2023
The post even saw a response from Bitcoin Ordinals creator,…