To introduce the TwelveFold NFT collection, Yuga Labs’ Bitcoin-based NFT service uses an archaic auction technique that is causing controversy in the crypto sphere.
The crypto community reacted negatively to Yuga Labs
Early Monday morning, Yuga Labs, the company that produces Bored Ape Yacht Club (BAYC) NFTs, started the auction for its first collection of 300 Bitcoin NFTs, dubbed TwelveFold.
The recent buzz surrounding Bitcoin NFTs is quickly being followed by the TwelveFold NFT collection. However, purchasing artwork created on the most popular crypto network needs an open marketplace, unlike Ethereum-based NFTs.
Many users, including Casey Rodamor, the creator of Bitcoin Ordinals, have criticized the existing auction method.
How to bid on a TwelveFold NFT?
Interested TwelveFold buyers must provide Bitcoin to a Yuga Labs deposit address to place bids during the auction. When the auction ends, the business has users’ Bitcoin in custody; if their bid is unsuccessful, the money is returned.
A user of Bitcoin Ordinals referred to this as a “scammer’s dream” and said that Yuga was setting a “REALLY terrible precedent” by conducting such an auction.
However, a few crypto community members have expressed their displeasure with the proposal, claiming it is like the “stone age” to process reimbursements for unsuccessful bids manually.
The main target of this critique is another project that was conducting a similar initiative and was similarly offering to reimburse money to unsuccessful bidders but ended up stealing users’ monies. The user continued that Yuga Labs “ought to set a better example” because it is one of the most well-known NFT brands.
If Yuga Labs continues to engage in “degenerate garbage like this again,” Casey Rodamor, the creator of the Ordinals inscriptions, has threatened to sever all links with the company and incite others to do the same.
Even Bitcoin Ordinals’ founder, Casey Rodarmor, commented on the article, ordering Yuga to “go fucked” and calling the auction’s behavior “degenerate nonsense.” He continued by saying that he would urge others to oppose the project if Yuga held a similar auction.
This contentious auction setup for Bitcoin-based NFTs results from the network’s limited capacity to support such operations. A feature currently absent on Bitcoin is the ability to submit on-chain bids for NFT auctions and sales on popular Ethereum markets like OpenSea and Blur.
Developers, including Yuga Labs, need to set up comparable systems on Bitcoin due to the limited smart contract capabilities of the crypto. However, considering the harsh criticism from users, the Bitcoin NFT’s success depends on resolving this rudimentary auction system.