Charlie Lee, the creator of main cryptocurrency Litecoin (LTC), believes that the continued spike in reputation of the nonfungible token, or NFT, trade has a lot in widespread with the 2017 preliminary coin providing, or ICO, mania.
Lee provided a minimum of 5 similarities between 2021’s NFT reputation and 2017’s ICO mania, additionally evaluating each to the altcoin craze in 2013 in a tweet on Tuesday.
In keeping with the Litecoin creator, all three cryptocurrency phenomena look very related, as they’re straightforward to create “with no limitations” and easy to know 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 latest individuals into crypto.”
Just like the excessive costs and pumps of altcoins in 2013, ICOs and NFTs are related to large hype and worry of lacking out. Nonetheless, “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 attempting to money in on this craze. Provide will overwhelm demand and the costs will ultimately crash,” the creator of Litecoin predicted.
Lee is just not alone in considering that NFTs are the brand new ICOs, as many crypto fans have drawn parallels between the 2 main ideas within the crypto trade lately. 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 turn into more and more fashionable amongst celebrities who could “rug all their followers,” implying they’re purely in search of income.
Representing a brand new methodology for digitally shopping for and promoting artwork and different media, NFTs have certainly gotten consideration from fashionable celebrities lately, including Canadian musician Grimes and Linkin Park rapper Mike Shinoda. Celeb endorsements apparently make up one other strong parallel between NFTs and ICOs, as various ICOs in 2017 were largely supported by celebrities, together with American music producer DJ Khaled and American actor Steven Seagal.