Non-fungible tokens, or NFTs, continue to make headlines in the world of crypto and art. One recent NFT auction that has garnered significant attention is the sale of TwelveFold, a collection of 12 NFTs created by Yuga Labs.
The sale of these NFTs fetched over $16 million, making it one of the most successful NFT auctions to date. However, the auction process has also received criticism from members of the NFT community.
credit:google
Yuga Labs And TwelveFold
Yuga Labs is a team of artists and developers that creates digital art and NFTs. The TwelveFold collection was created by Yuga Labs’ artist known as “Fewocious”.
The NFTs feature brightly colored, abstract shapes and forms, each representing a different “fold” in the collection.
credit:google
The TwelveFold NFTs were sold through the auction platform OpenSea, with bidding starting on February 28, 2022. The auction was structured in a unique way, with each NFT being sold separately over the course of 12 hours.
This format was intended to build excitement and anticipation for each NFT as it came up for auction.
The first NFT in the collection sold for 2,000 ETH (approximately $2.8 million) to an anonymous bidder. The remaining 11 NFTs also sold for high prices, with the final NFT in the collection selling for 1,000 ETH (approximately $1.5 million).
credit:google
In total, the sale of the TwelveFold collection generated over $16 million in revenue for Yuga Labs.
While the high sale prices for these NFTs may be impressive, the auction process has also been met with criticism from some members of the NFT community.
The Criticism
One common criticism is that the format of the auction, with each NFT being sold separately over the course of 12 hours, created an unfair advantage for early bidders. Some NFT collectors may have missed out on the opportunity to bid on their preferred NFT if it was sold earlier in the auction.
Another point of criticism is the lack of transparency in the auction process. Yuga Labs did not release information on the reserve prices for each NFT, which can make it difficult for bidders to know whether they are overpaying for a particular NFT.
credit:google
Additionally, some members of the NFT community have raised concerns about the potential for shill bidding, where fake bids are placed to drive up the price of an NFT.
Despite these criticisms, the success of the TwelveFold auction demonstrates the continued interest in NFTs and the potential for digital art to be sold for high prices.
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As the NFT market continues to evolve, it will be important for creators and auction platforms to address concerns about transparency and fairness in the auction process.
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