The founding father of the ‘digital silver’ drew parallels of the booming NFTs market to the notorious ICO market of late-2017.
Lee on NFTs
Litecoin founder Charlie Lee is not any large fan of non-fungible tokens (NFTs), the booming crypto subsector which noticed muted progress within the earlier however exploded to its present $3.44 billion valuation previously months.
Lee took to Twitter to elucidate why he wasn’t a fan. “I see lots of parallels between 2021’s NFTs with 2017’s ICOs and 2013’s altcoins,” he mentioned.
“Few will maintain and have worth, most received’t,” mentioned Lee, drawing parallels between NFTs and ICOs.
NFT noticed a growth in late-2020 that carried over to 2021. These are, for the uninitiated, a cryptographic illustration of tangible and non-tangible objects (akin to actual property, digital artwork, music, amongst different issues), that show possession of the rights of no matter is represented.
I see lots of parallels between 2021’s NFTs with 2017’s ICOs and 2013’s altcoins:
– straightforward to create new ones with no boundaries
– easy to know & clarify
– brings tons of recent individuals into crypto
– excessive costs & pumps create hype/FOMO
– few will maintain & have worth, most will not
— Charlie Lee [LTC⚡] (@SatoshiLite) March 2, 2021
The submarket of NFTs has gone ballistic previously months. The sector’s whole worth was underneath $300 million in 2019, grew to over $1 billion in 2020, to its present $3.4 billion. Buying and selling volumes of NFTs have expanded too.
As per Dappradar, the common quantity was underneath $30,000 in March 2020, whereas right now, it reaches tens of hundreds of thousands in a single day alone. The NFTs are going underneath the hammer for large quantities too. A number of platforms, akin to CryptoPunks, basketball-branded NBA High Pictures, and OpenSea, have seen gross sales of $1 million per NFT in 2021—a transfer that has attracted criticism from a number of quarters.
For crypto proponents like Lee, the sudden progress of NFTs is just like ICOs. In his tweet yesterday, he listed a few of these similarities: [that they are] straightforward to create new ones with no boundaries, easy to know & clarify, brings tons of recent individuals into crypto, excessive costs & pumps create hype/FOMO.
The alarm bells are probably not unfounded both. “DeFi Ted,” an nameless crypto investor and advisor to insurance coverage challenge Cover Protocol, shared his experiences with NBA High Pictures in a tweet yesterday, explaining his current ordeal with the agency’s withdrawal course of.
Right here is the complete break down of my expertise with Dapper labs.
— DeFi Ted (Bakes) (@DeFi_Ted) March 2, 2021
He alleged that High Pictures didn’t reply to withdrawal requests, a degree that made DeFi Ted query the challenge’s solvency.
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