Greg Solano said that the only reason Yuga Labs was able to use the Bitcoin blockchain and its strategic bidding process was because the company was a “trusted party.”
Greg Solano, who is a co-founder of Yuga Labs, doesn’t agree that scammers are drawn to the company’s most recent auction, which was its first-ever auction on the Bitcoin network.
Solano said, “This only works because Yuga [Labs] is a trustworthy party and we could be counted on in this way. “I wouldn’t recommend that to other people,” she said.
The owner of the well-known non-fungible token (NFT) collection, Bored Ape Yacht Club (BAYC), ended its 24-hour TwelveFold auction on Monday after raising $16.5 million and giving out 288 NFTs to the highest bidders.
But Miami-based Yuga Labs is now having trouble because users don’t like how the company’s customized bidding system works. Some people said that Yuga Labs’ decision to keep bidders’ bitcoin set a bad example for future projects.
Solano says, though, that Yuga chose to use the Bitcoin blockchain in order to make things more clear. By being clear, the business may “set the best example, given the limits of running a trustless auction on Bitcoin, which just isn’t possible at this point.”
The Ordinals protocol was used for the Bitcoin-enabled NFT collection, and bidders needed their own self-custody wallets to send Yuga the full value of their bids.
For the auction, people had to bring an empty wallet that could hold the NFT. Nearly 3,200 bidders sent in their bitcoins ahead of time. In a tweet, the company said that unsuccessful bidders would “have their bid sum reimbursed” within 24 hours to their wallet addresses.
When asked about how the company uses the Bitcoin blockchain, Yuga said that it was important that it didn’t hide the trust but instead put it in the spotlight.
Solano said that the auction gives Yuga a way to get developers interested while also increasing the Bitcoin chain’s security budget and experimenting with it. He said that it was still in a “extremely primitive” stage.
Solano said that, except for the fact that “We’re marketplace agnostic, except for the fact that we strongly believe in creative royalties and want to see marketplaces stand by creators.”
Content Source: coindesk.com
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