Charlie lee, the creator of the main cryptocurrency Litecoin (LTC), believes that the continued rise in popularity of the non-fungible token, or NFT, industry has a lot in common with the 2017 initial coin offering, or ICO mania.
read provided at least five similarities between the popularity of the NFTs of 2021 and the ICO mania of 2017, and also compared both to the altcoin craze of 2013 in a tweet on Tuesday.
According to the creator of Litecoin, the three phenomena of cryptocurrencies look very similaras they are easy to create “without barriers” and simple to understand and explain. Lee noted that 2013 NFTs, ICOs, and altcoins also have great similarity in terms of adoption., since they all bring, or used to bring, “tons of new people towards cryptocurrencies”.
Like the high prices and pump of altcoins in 2013, ICOs and NFTs are associated with massive hype and fear of being left out. Nevertheless, “few will stand and have value”, and most people did not or will not, Lee concluded.
Lee previously expressed some bold criticism about the NFT industry, stating in February that NFTs have a “zero cost” to create. “Due to the near zero cost of creating another NFT, the market will eventually be flooded with tokens from artists trying to cash in on this craze. Supply will overwhelm demand and prices will eventually collapse”Predicted the creator of Litecoin.
Lee isn’t the only one who thinks NFTs are the new ICOs, as many crypto enthusiasts have drawn parallels between the two main concepts in the crypto industry recently. Michael Goldstein, president of the Satoshi Nakamoto Institute, as well tweeted Monday that “NFTs are the ICOs of 2021”.
Andrew Kang, a crypto investor and co-founder of Mechanism Capital, He also took to Twitter on Tuesday to point that NFTs have become increasingly popular with celebrities who can “overwhelm all their fans”, which implies that they only seek profit.
The NFTs, that represent a new method of buying and selling digital art and other media, have recently received the attention of popular celebrities, like Canadian musician Grimes and Linkin Park rapper Mike Shinoda. Celebrity endorsements appear to be another strong parallel between NFTs and ICOs, as several ICOs in 2017 had celebrity endorsements, like the American music producer DJ Khaled and the American actor Steven Seagal.