Yuga Labs Bitcoin NFT offering has kicked off with a bang.
The firm behind Bored Ape Yacht Club (BAYC) NFTs opened bids for its first 300-piece Bitcoin NFT collection, called TwelveFold, early Monday morning.
TwelveFold follows fast on the heels of the recent excitement around non-fungible tokens (NFTs), notably Ordinals. But unlike Ethereum-based NFTs, buying artworks built on the premier crypto network doesn’t have an open marketplace.
Thus, the current auction process has earned 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 to place their bids. The company then custodies users Bitcoin until the auction ends; if a bid is unsuccessful, the funds are returned.
According to a Bitcoin Ordinals user, this is a "scammer's dream," adding that “Yuga is establishing a REALLY bad precedent running an auction like this.”
The criticism here revolves around other projects running a similar project, also promising to return funds to unsuccessful bids, but instead making off with users’ money. Being one of the most recognizable NFT brands, Yuga Labs "need to set a better example," added the user.
Casey Rodamor, the mind behind Ordinals inscriptions, threatened to cut all ties with Yuga Labs and encourage others to do the same if they perform "degenerate bullshit like this again."
Bitcoin’s NFT limits
This controversial auction arrangement for Bitcoin-based NFTs is a result of the network’s limited ability to accommodate such operations.
On Ethereum, for example, you can place on-chain bids on top Ethereum marketplaces like OpenSea and Blur for NFT auctions and sales, a feature currently unavailable on Bitcoin.
When it comes to digital collectibles, most enthusiasts think of Ethereum, Solana, or Polygon—deservedly, as proof-of-stake blockchains have cornered the NFT marketplace. But digital collectibles using the Bitcoin blockchain have existed since 2014, and several projects have made it their continuing mission to bring NFTs to the first and biggest cryptocurrency.
NFTs are digital assets that are provably unique and linked to digital (and sometimes physical) content like digital art, movies, and mu...
Bitcoin's limited smart contract ability prohibits developers, even the likes of Yuga Labs, from setting up similar mechanisms on Bitcoin.
But given the stark criticism from users, continued Bitcoin NFT adoption appears to hinge on solving this primitive auction mechanism.
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