March 22, 2023

Yuga Labs’ TwelveFold Bitcoin NFT Collection Draws Criticism for Auction Process

Yuga Labs, the company behind the popular Bored Ape Yacht Club (BAYC) NFTs, has launched its first 300-piece Bitcoin NFT collection, called TwelveFold. The collection was made available for bidding early Monday morning and has already generated a lot of buzz in the NFT community.

However, the auction process has drawn criticism from some users, including Casey Rodamor, the inventor of Bitcoin Ordinals. Unlike Ethereum-based NFTs, buying artworks built on the premier crypto network doesn’t have an open marketplace. This means that interested buyers must transfer Bitcoin to a Yuga Labs deposit address to place their bids. The company then custodies users’ Bitcoin until the auction ends, and if a bid is unsuccessful, the funds are returned.

According to a Bitcoin Ordinals user, this process is a “scammer’s paradise” and leaves buyers vulnerable to fraud. The user also criticized Yuga Labs for not providing enough information about the auction process and the security measures in place to protect buyers’ funds.

Despite the criticism, the TwelveFold collection has already attracted a lot of attention from NFT collectors and investors. The collection features 300 unique pieces, each with its own distinct design and rarity level. The most valuable piece in the collection is a one-of-a-kind “Genesis” NFT, which is expected to fetch a high price at auction.

Yuga Labs has not yet responded to the criticism of its auction process. However, the company has stated that it is committed to providing a safe and secure platform for buying and selling NFTs. With the popularity of NFTs continuing to grow, it is likely that we will see more companies like Yuga Labs entering the market and offering new and exciting collections for buyers to bid on.

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