‘Scammers dream’ — Yuga’s auction model for Bitcoin NFTs sees criticism

Nonfungible Token (NFT) conglomerate Yuga Labs has been criticized by the cryptocurrency community, including the creators of Bitcoin Ordinals, for its planned auction of its new Bitcoin NFT collection.

On March 5th, Yuga opened the tender for the “TwelveFold” collection. The collection shows 300 NFT-like images of him carved into Satoshi using Bitcoin’s native ordinal protocol, with 288 sent to the highest 288 bidders from the collection.

TwelveFold’s auction has started and will end in blocks just before 3pm PT tomorrow, March 6, 2023. I wish you the best.https://t.co/gvl8IHpekC pic.twitter.com/xGWU9jdCoO

— Yuga Lab (@yugalabs) March 5, 2023

According to a report dated March 5, release, the person participating in the bidding process must submit the entire bid amount in BTC to a unique BTC address controlled by Yuga. The winner will only have to pay her BTC for the bid, and Yuga said she will give back her BTC to the highest bidder who fails.

However, such plans have angered some within the crypto community, with some pointing out that having to manually issue refunds for failed bids is akin to the “Stone Age.” There is also

How tomorrow’s yuga auction works is everyone sends bitcoin to one wallet and if you lose the bid they promise to send it back manually

probably tens of millions of dollars

we are still in the stone age

— Giancarlo (@GiancarloChaux) March 5, 2023

The user behind the Ordinals-focused Twitter account called the auction model “usually” a “fraudster’s dream” and doubted that Yuga would protect BTC from failed bids, but how the auction was run. added that it sets “really bad priorities.”

Yuga runs auctions like this to establish very bad priorities. They store bidders’ bitcoins and promise to send back unsuccessful bids. should give a better example.

— Normally (@veryordinally) March 6, 2023

The post also saw a response from Bitcoin Ordinals creator Casey Rodarmor himself. He told his Yuga to “fuck it up” and called the auction run “depraved bullshit”.

He added that he would encourage others to boycott the project if Yuga held a similar auction.

dear @yugalabs,@veryordinarily is correct. Behavior like this proves that for some entities and people, “the once shitcoiner will always be the shitcoiner.”

For me personally, if Casey Rodermer ever sees you, Yuga Lab, if that entity is freaking out with such depraved bullshit again, I wash… https://t.co/COARsn4X0o

— Casey Rodermer (@rodarmor) March 6, 2023

pointed out by other users outside It is a flaw of the auction system that some people may overpay for TwelveFold because there can be a large price difference between the highest and lowest bids of the top 288.

Yuga seems to make a lot of money at 12x (laughs) pic.twitter.com/UF7efYmN0k

— frankdegods.eth (@frankdegods) March 5, 2023

Despite criticism from some, many were happy to see large-scale projects like Yuga, made famous by multiple Ethereum-based NFT collections, bridging to Bitcoin. .

Related: Luxor Mining Acquires OrdinalHub Amid Bitcoin-Based NFT Hype

Usually criticizing the collection before, he later tweeted his appreciation for “the fact that Yuga tried the effort.” [to] Please use Bitcoin Root when setting up this auction. “

To give credit where credit is due – I really appreciate the fact that Yuga made the effort to try and go the Bitcoin route in setting up this auction. It’s somewhat absurd to see the Bitcoin approach setting a worse precedent than the ETH-based approach, but it breaks my heart even more…

— Normally (@veryordinally) March 6, 2023

Ordinals based collection, Ordinal Pizza OG, expressed Excited about Yuga’s BTC collection, calling it “massive net positive for Ordinal.”

Criticism was not enough to stop the cashing bidders from cementing their top spot to grab Yuga’s first BTC collection.

According to TwelveFold, the highest bid at the time of writing was 1.11 BTC (around $25,000). website The lowest registered bid is 0.011 BTC, or about $250.