diff --git a/x/auction/types/auctions.go b/x/auction/types/auctions.go
index fe9ec321..ffdbcac4 100644
--- a/x/auction/types/auctions.go
+++ b/x/auction/types/auctions.go
@@ -88,12 +88,6 @@ func (a BaseAuction) Validate() error {
 	if a.EndTime.After(a.MaxEndTime) {
 		return fmt.Errorf("MaxEndTime < EndTime (%s < %s)", a.MaxEndTime, a.EndTime)
 	}
-	if a.HasReceivedBids && !a.Bid.IsPositive() {
-		return fmt.Errorf("cannot have a zero value bid when auction has a true HasReceivedBids flag value")
-	}
-	if !a.HasReceivedBids && a.Bid.IsPositive() {
-		return fmt.Errorf("cannot have a positive value bid when auction has a false HasReceivedBids flag value")
-	}
 	return nil
 }
 
@@ -193,7 +187,7 @@ func NewDebtAuction(buyerModAccName string, bid sdk.Coin, initialLot sdk.Coin, e
 			Lot:             initialLot,
 			Bidder:          supply.NewModuleAddress(buyerModAccName), // send proceeds from the first bid to the buyer.
 			Bid:             bid,                                      // amount that the buyer is buying - doesn't change over course of auction
-			HasReceivedBids: true,                                     // new auctions don't have any bids
+			HasReceivedBids: true,
 			EndTime:         endTime,
 			MaxEndTime:      endTime,
 		},
diff --git a/x/auction/types/auctions_test.go b/x/auction/types/auctions_test.go
index 0a1cdd60..b857fc18 100644
--- a/x/auction/types/auctions_test.go
+++ b/x/auction/types/auctions_test.go
@@ -196,34 +196,6 @@ func TestBaseAuctionValidate(t *testing.T) {
 			},
 			false,
 		},
-		{
-			"zero bid with received bids",
-			BaseAuction{
-				ID:              1,
-				Initiator:       testAccAddress1,
-				Lot:             c("kava", 1),
-				Bidder:          addr1,
-				Bid:             c("kava", 0),
-				EndTime:         now,
-				MaxEndTime:      now,
-				HasReceivedBids: true,
-			},
-			false,
-		},
-		{
-			"positive bid without receiving bids",
-			BaseAuction{
-				ID:              1,
-				Initiator:       testAccAddress1,
-				Lot:             c("kava", 1),
-				Bidder:          addr1,
-				Bid:             c("kava", 1),
-				EndTime:         now,
-				MaxEndTime:      now,
-				HasReceivedBids: false,
-			},
-			false,
-		},
 	}
 
 	for _, tc := range tests {