- Ordinals’ inventor believes the Bitcoin NFT auction of Yuga Labs is leading to a precedent that can benefit scammers.
- Some in the crypto community said that refunds being conducted manually for unsuccessful bids was both outdated as well as inefficient.
- Some Twitter users said that Partially Signed Bitcoin Transactions should be used in Bitcoin auctions as an alternative to enable several parties to sign a transaction prior to it being broadcast to the network.
The first ordinals NFT collection of Yuga Labs excited many, though its auction has led to extreme controversy.
Ordinals’ inventor Casey Rodarmor termed the NFTs sale “degenerate” owing to the placement of the bitcoin holdings of participants at risk.
On Sunday, Yuga Labs posted details about the TwelveFold auction through a series of Twitter threads. The collection has 300 NFTs, out of which 288 were meant for auction, and the remaining 12 were reserved for contributors, charity deeds, and donations.
Followers were asked to visit the Twelvefold website and be a part of the auction by placing their bids. The process involves sending bitcoin to an exclusive Bitcoin address that is held by Yuga Labs.
On March 5, the auction started at 3 p.m. PT and went for 24 hours. However, in just a few hours, some community members expressed concern that the auction demanded excessive trust in Yuga Labs.
Twitter user @veryordinally said that Yuga Labs was creating a very bad precedent by auctioning in the new Bitcoin NFT space. He expressed that Yuga is taking bidders’ bitcoin into custody by promising to send back unsuccessful bids. Even if they do so, it looks like a scam approach.
Rodarmor agreed with Ordinally and criticized Yuga. He added that anyone who has worked at Yuga has shown who they are. They lack a mix of character, intelligence, empathy, spine, talent, acumen, and experience.