Home Litecoin Litecoin creator Charlie Lee says NFTs are like ICOs in 2017

Litecoin creator Charlie Lee says NFTs are like ICOs in 2017

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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 development within the earlier however exploded to its present $3.44 billion valuation previously months.

Lee took to Twitter to clarify 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 gained’t,” mentioned Lee, drawing parallels between NFTs and ICOs.

NFT noticed a increase 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.

The submarket of NFTs has gone ballistic previously months. The sector’s complete 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. 

The increase

As per Dappradar, the common quantity was underneath $30,000 in March 2020, whereas at the moment, it reaches tens of hundreds of thousands in a single day alone. The NFTs are going underneath the hammer for big quantities too. A number of platforms, akin to CryptoPunks, basketball-branded NBA Prime Photographs, 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 development of NFTs is just like ICOs. In his tweet yesterday, he listed a few of these similarities: [that they are] simple to create new ones with no obstacles, easy to know & clarify, brings tons of latest folks into crypto, excessive costs & pumps create hype/FOMO.

The alarm bells are seemingly not unfounded both. “DeFi Ted,” an nameless crypto investor and advisor to insurance coverage mission Cover Protocol, shared his experiences with NBA Prime Photographs in a tweet yesterday, explaining his current ordeal with the agency’s withdrawal course of.

He alleged that Prime Photographs didn’t reply to withdrawal requests, some extent that made DeFi Ted query the mission’s solvency.

Posted In: Ethereum, NFTs

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