Yuga Labs bitcoin NFT auction concludes amid complaints about its method

Quick Take

  • Yuga Labs concluded its auction of bitcoin-native NFTs, drawing 288 successful bids.
  • The startup’s approach drew criticism from some quarters as the auction played out.

Yuga Labs' experiment with Bitcoin Ordinals drew 288 winning bids, with one reaching nearly $160,000 for a single NFT.

The 24-hour auction of the collection, named TwelveFold, ended at around 3 p.m. PT. It marks Yuga Labs' first dalliance with Bitcoin NFTs, having so far dominated the market on Ethereum with blockbuster collections Bored Ape Yacht Club and CryptoPunks. 

The top bid was worth 7.1159 BTC, equal to roughly $159,600. The lowest was 2.2501, or about $50,400. 

"The TwelveFold auction has ended. Congratulations to the top 288 bidders - you will receive your inscription within one week," Yuga Labs tweeted. "Valid bids that did not rank in the top 288 will have their bid amount returned to their receiving address within 24 hours."

Through this minting method, Bitcoin NFTs are inscribed onto satoshis on the Bitcoin blockchain. Inscriptions, also known as digital artifacts, are created when a file, such as an art image like those created for TwelveFold, is written (or inscribed into) units of Bitcoin called satoshis, the smallest individually identifiable units of Bitcoin.

The process is made possible through the Ordinal Theory protocol, with such NFTs simply donning the name "Ordinals."

Ordinals have gained popularity, given past upgrades to the Bitcoin blockchain that made it cheaper to store data in single transactions.

Critics pile in TwelveFold

While Yuga will be celebrating another NFT sellout, some market watchers were perplexed at the format of the auction, which saw the company take custody of bidders' bitcoin. 

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