Bitcoin NFT Auction by Yuga Labs Draws in $16.5M Despite Criticism
Yuga Labs 12Falls Collection auction was concluded yesterday. The event started on March 5 and based on the announcement, 288 bidders will receive 288 inscriptions from the 300 NFT-like images on Satoshi using Ordinals.
Although many people criticized auction model, the event was a great success. Yuga Labs announced the auction’s success, saying it raised $16.5 million in one day, recording the targeted 288 winning bids.
First Bitcoin NFT Auction Record Huge Success
On his Twitter mail, Yuga Labs congratulated the 288 winners and promised to send their Bitcoin NFTs within 7 days. It also assured the other losing bidders to return their BTCs to their wallets within 24 hours.
From the auction details at TwelveFold Collection the websiterealized Yuga Labs 735 BTC worth almost $16.5 million on market price. The highest bidder among the winners paid just over 7BTC, equivalent to $161,000 for a Bitcoin NFT.
Recall that Yuga Labs’ announcement last month revealed that the NFTs would be around a 12×12 grid with highly rendered 3D elements and hand-drawn features. The winners are excited to receive their NFTs and eagerly share their victory on Twitter. For example, one of the winners, Carson Turnertook to Twitter to announce it and express excitement at the bid’s success.
With such a great success recorded in the first ever bitcoin NFT auction sale, adoption of the Ordinals protocol is likely to increase and the company has successfully set the pace by leveraging the #1 crypto blockchain in the growing sector.
Yuga Labs Auction Model: A Scammer’s Delight
The Yuga Labs auction was successful even with criticism about the model, as the process of sending BTC to the company’s wallet did not sit well with many people.
For example, Ordinals creator Casey Rodarmor, warned The NFT company to refrain from following such a process again, or he will wash his hands of the project and influence others to do so.
Another Twitter user, Giancarlo, asked if Yuga Labs is still in the stone age, given that it aims to return BTCs to those who lost manually. Also another Twitter user, @veryordinally tweeted about the process, saying that Yuga Labs is setting the wrong priority with its model.
The argument was that such a process would lead to many future fraudulent actions by fake NFT creators. He mentioned that even if Yuga Labs would return the BTCs as promised, other scammers will not.
Nevertheless, Yuga Labs has promised to return BTC for bidders who did not win within 24 hours. But only time will tell if fraudsters will use the Yuga Labs model to trick buyers, as critics feared.
Featured image from Pixabay and chart from Tradingview.com
