Charlie Lee, the creator of main cryptocurrency Litecoin (LTC), believes that the continuing spike in recognition of the nonfungible token, or NFT, trade has a lot in frequent with the 2017 preliminary coin providing, or ICO, mania.
Lee provided at the very least 5 similarities between 2021’s NFT recognition and 2017’s ICO mania, additionally evaluating each to the altcoin craze in 2013 in a tweet on Tuesday.
In response to the Litecoin creator, all three cryptocurrency phenomena look very related, as they’re simple to create “with no limitations” and easy to grasp and clarify. Lee famous that NFTs, ICOs and 2013’s altcoins even have a giant similarity when it comes to adoption — as all of them convey, or used to convey, “tons of recent folks into crypto.”
Just like the excessive costs and pumps of altcoins in 2013, ICOs and NFTs are related to huge hype and concern of lacking out. Nevertheless, “Few will maintain and have worth,” and most of the people didn’t or won’t personal them, Lee concluded.
Lee beforehand expressed some daring criticism over the NFT trade, claiming in February that NFTs have “zero cost” of creation. “Due to the close to zero price to create one other NFT, the market will ultimately be flooded with NFTs from artists making an attempt to money in on this craze. Provide will overwhelm demand and the costs will ultimately crash,” the creator of Litecoin predicted.
Lee shouldn’t be alone in pondering that NFTs are the brand new ICOs, as many crypto lovers have drawn parallels between the 2 main ideas within the crypto trade not too long ago. Michael Goldstein, president of the Satoshi Nakamoto Institute, additionally tweeted Monday that “NFTs are the ICOs of 2021.”
Andrew Kang, a crypto investor and co-founder of Mechanism Capital, additionally took to Twitter Tuesday to pinpoint that NFTs have develop into more and more widespread amongst celebrities who could “rug all their followers,” implying they’re purely on the lookout for earnings.
Representing a brand new methodology for digitally shopping for and promoting artwork and different media, NFTs have certainly gotten consideration from widespread celebrities not too long ago, including Canadian musician Grimes and Linkin Park rapper Mike Shinoda. Movie star endorsements apparently make up one other strong parallel between NFTs and ICOs, as plenty of ICOs in 2017 were largely supported by celebrities, together with American music producer DJ Khaled and American actor Steven Seagal.