BAYC creator Yuga labs have recently opened the auction process for its Bitcoin NFT collection TwelveFold via a press release on March 5. In accordance with it, interested users will have to transfer their entire bid amount to an address controlled by Yuga.
Winners would simply pay up the BTC they bid, while Yuga said it would return the BTC to those unsuccessful in placing a top bid.
This method of taking bidders’ bitcoin into custody with a promise to send back unsuccessful bids has invited backlash from the community members.
One ordinal-focused account accused the firm of “establishing REALLY bad precedence, comparing the model to be a “scammer’s dream”.
…” Not doubting they’ll do that, but this model is a scammer’s dream, and credible players need to set a better example”.
When a billion-dollar player enters the space it’s inexcusable not to set a higher bar. I wonder who’s been advising them. My advice would be to halt the auction and return all funds. And then restart with a sane, trustless model.
Even Bitcoin Ordinals developer Casey Rodarmor stepped in, advising Yuga Labs to refrain from producing such “degenerate bullshit” in the future or he would encourage others to boycott the project.
Some have compared the laborious refunding of rejected bids to the “stone age” approach.
Several people, on the other hand, opted to see the bright side of events and praised Yuga labs for using the emerging technology, labeling it bullish.
As reported by TronWeekly Yuga Labs, the entity behind the famous NFT collection Bored Ape Yacht Club, debuted a limited edition Bitcoin-based NFts called TwelveFold.
Bitcoin NFTs Quickly Rose To Prominence
300 works of generative art written with satoshis on the Bitcoin blockchain will be included in the collection.
All bids will be made in bitcoin. Additionally, Yuga Labs also revealed that “wallets do not currently support the transfer of individual satoshis.”
This meant that users run the danger of losing their inscribed Satoshi if they store their digital assets alongside other BTC holdings.
BTC-based NFTs or so-called Ordinals become all the rage with the inscription of the 100,000th ordinal on 14th Feb.
Recently, the number of these Inscriptions crossed 200k, data from Dune Analytics showed.
Similar to nonfungible tokens [NFTs], these Inscriptions are digital assets that can be inscribed into one Satoshi, the smallest denomination of a Bitcoin.