Yuga Labs' inaugural collection of non-fungible Bitcoin Ordinal tokens has come to a close, netting the company a total of 735 Bitcoins, valued at $16.5 million, in just 24 hours. Despite criticism from the crypto community, the auction was a success, with 288 bidders winning one of the 300 limited edition NFTs from the "TwelveFold" collection.
A Unique Collection with a Controversial Auction Method
Yuga Labs described the "TwelveFold" collection as a "base 12 art system localized around a 12x12 grid, a visual allegory for data mapping on the Bitcoin blockchain." The collection features a limited edition of 300 generative pieces registered to Satoshi on the BTC network.
However, the way the auction was conducted has drawn backlash from the crypto community. Bidders were required to send their entire bid in Bitcoins to a unique address controlled by Yuga. The winners would simply pay the amount they bid, while Yuga stated it would return the Bitcoins to those who failed to win the highest bid.
This method of conducting the auction has caused outrage within the crypto community, with some pointing out that manual refunds for unsuccessful bids is an outdated model. Critics have also pointed out that Ethereum NFT markets such as OpenSea and Blur offer on-chain bidding, which is currently not possible on the Bitcoin blockchain due to smart contract limitations.
Despite the criticism, the auction attracted a large number of bids, with the highest bidder paying just over 7 Bitcoins, or $161,000, for one of the pieces.
The TwelveFold auction has ended. Congratulations to the top 288 bidders - you will receive your inscription within one week.
Valid bids that did not rank in the top 288 will have their bid amount returned to their receiving address within 24 hours. — Yuga Labs (@yugalabs) March 6, 2023
Winners and Refunds
A total of 288 bidders won one of the Bitcoin NFTs from the "TwelveFold" collection, and Yuga stated that winners will receive their entries within a week.
Unsuccessful bids will be refunded their bid amount within 24 hours. Although no one doubts that Yuga will return money to unsuccessful bidders, the community's criticism highlights flaws in the way the auction was conducted and sets a negative example for the BTC NFT market.
Despite the criticism, many were happy to see a large project like Yuga deciding to use the Bitcoin blockchain. Yuga Labs' inaugural NFT auction was a success, netting the company $16.5 million in just 24 hours. However, the way the auction was conducted has drawn criticism from the crypto community and highlights the limitations of the Bitcoin blockchain in comparison to Ethereum NFT markets.