Yuga Labs Bitcoin The NFT offer has started with a bang.
The company behind it Bored Ape Yacht Club (BAYC) NFTs opened bidding for its first 300-share Bitcoin NFT collection, called TwelveFold, early Monday morning.
TwelveFold follows quickly on the heels of the recent excitement surrounding non-fungible tokens (NFTs), especially Ordinals. But in contrast to Ethereum-based NFTs, the purchase of artwork built on the premier crypto network does not have an open marketplace.
Thus, the current auction process has drawn criticism from some users, including the inventor of Bitcoin Ordinals, Casey Rodamor.
How to buy Bitcoin NFTs
The auction process requires interested TwelveFold buyers to transfer Bitcoin to a Yuga Labs deposit address in order to bid. The company then holds users Bitcoin until the auction ends; if a bid is unsuccessful, the funds are returned.
According to one Bitcoin Ordinals user, this is a “swindler’s dream”, adding that “Yuga is setting a VERY bad precedent running an auction like this.”
The criticism here is that other projects that run a similar project also promise to return funds to unsuccessful bids, but instead dispose of the users’ money. As one of the most recognizable NFT brands, Yuga Labs “needs to set a better example,” the user added.
Casey Rodamor, the mastermind behind the Ordinals inscriptions, threatened to cut all ties with Yuga Labs and encourage others to do the same if they carry out “degenerate nonsense like this again.”
Bitcoin’s NFT limits
This controversial auction scheme for Bitcoin-based NFTs is a result of the network’s limited ability to accommodate such operations.
On Ethereum, for example, you can place chain bids on top Ethereum marketplaces like OpenSea and Blur for NFT auctions and sales, a feature not currently available on Bitcoin.
Bitcoin’s limited capability for smart contracts prohibits developers, even the likes of Yuga Labs, from setting up similar mechanisms on Bitcoin.
However, given the strong criticism from users, Bitcoin NFT adoption still seems to depend on solving this primitive auction mechanism.
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