Last weekend, Yuga Labs auctioned its very first Bitcoin (BTC) NFT collection, called TwelveFold. The auction of the 288 copies was a great success, raising $ 16.5 million. Despite this, the auction was heavily criticized. The way the auction was set up is said to be a “scammers dream”. The co-founder of Yuga Labs tells Coindesk why he disagrees.
“Yuga Labs can be trusted”
As mentioned, Yuga Labs, the leading company in the NFT sector, recently auctioned its first Bitcoin NFT collection. Bidders sent BTC to Yuga Labs and losing bidders had their BTC manually returned by Yuga Labs within 24 hours. Critics say this was a very primitive system and Yuga Labs should have set a better example.
Greg Solano, co-founder of the NFT company, responds to the criticism. According to him Yuga Labs a reliable party and this system was therefore a good option.
“This only works because Yuga Labs is a reliable party and people can count on us. I would not recommend this to other parties.”
So Solano. Whether the critics are satisfied with this explanation remains to be seen. The founder of Ordinals, the company that enabled Bitcoin NFTs back in January, will certainly not be pleased. The Yuga Labs auction infuriated him. Through Twitter he scolded the company and threatened a boycott.
Bitcoin NFT Auction Still a Success
Despite the criticism, Yuga Labs was also praised for the auction. The choice to use the Bitcoin network was called courageous. Using, for example, the Ethereum (ETH) network would have been a much safer and easier choice.
According to Solano, the Bitcoin network was chosen in an effort to be more transparent. According to him, it is currently difficult to hold an auction on Bitcoin that does not involve trust.
Despite the hectic pace vehemently commanded on the revolutionary collection. The highest winning bid during the auction counted over seven bitcoin worth about $150,000.