Litecoin creator Charlie Lee criticized the non-fungible token (NFT) industry, comparing it to the ICO boom in 2017.
Lee believes the surge in NFT’s popularity has a lot to do with the ICO mania in 2017 and even the altcoin craze in 2013. According to Lee, the similarity of NFT, ICO and numerous forks of 2013 lies in the absence of barriers to their creation, and all this is aimed at massively attracting people to the cryptocurrency market. There is a lot of hype for these three cryptocurrency “phenomena” – potential buyers are afraid of missing out on possible profits, so they invest in NFT, forgetting about caution. However, only a few projects really have value.
“Given the zero cost of creating an NFT, the market will be flooded with tokens for artists and singers trying to cash in on this craze. The supply will exceed demand, and eventually the prices of such tokens will collapse, ”the creator of Litecoin is convinced.
Nakamoto Institute President Michael Goldstein has named non-fungible tokens “ICO of 2021”, which are becoming especially popular among celebrities. For example, Canadian singer Grimes recently sold a digital art collection called WarNymph Collection Vol. 1 ”for $ 6 million. The collection includes images, as well as unreleased music tracks and videos.
In addition, Linkin Park singer Mike Shinoda also released his own irreplaceable token this month. According to cryptocurrency investor and co-founder of Mechanism Capital, Andrew Kang, by doing so, celebrities can scare away their fans, who might think their favorite stars are looking for money.
According to NonFungible and L’Atelier, in 2020, the turnover of transactions with NFT was about $ 250 million, while in 2019 this figure reached only $ 62 million.
