Yuga Labs’ First Bitcoin NFT Collection Generated $16.5 Million
The NFT collection TwelveFold by Yuga Labs was sold out in one day during the online auction. The collection raised 735 BTC, with a maximum bid of 7 BTC.
Yuga Labs benefited from the hype around the NFT protocol Ordinals and successfully released TwelveFold, the first NFT collection on the Bitcoin network. A total of 300 digital artifacts were issued. During the online auction, 288 of them were sold out within a day after the release.
The collection generated a total of 735 BTC, equivalent to ~$16.5 million at the time of sale. The highest bid was 7 BTC (~$161,000). The artworks inscribed onto satoshis are generative art, a visual allegory for the data structure of the Bitcoin network.
The crypto community on Twitter criticized Yuga Labs, describing the auction model as a “scammer’s dream.” The fact is that the bidding was “blind,” and the organizers collected all bids, naming the winners after the auction ended. They promised to return all unplayed bids to the senders within a week after the end of the auction.
Users noted other shortcomings of the bidding model, noting that it created the conditions for the substantial overpayment. Ordinals Founder Casey Rodarmor didn’t really appreciate Yuga Labs’ initiative, to say the least, and called for a boycott of the auction.
The launch of the NFT protocol Ordinals provoked a big stir, amid which the number of non-zero Bitcoin addresses rose to a new all-time high. No wonder Yuga Labs, a leader in the NFT market, decided to take advantage of the situation.