The creator of the Litecoin cryptocurrency, thought of the “digital silver”, made a warning about Non-Fungible Tokens (NFT). In accordance Charlie Lee, the NFTs market is just like ICOs on the finish of 2017.
Lee revealed a textual content on Twitter exhibiting that he’s not an enormous fan of non-fungible tokens, a market that has attracted the eye of many individuals and noticed its quantity explode in February, over US $ 3.4 billion had been traded.
Lee mentioned that NFTs are just like ICOS in 2017. “I see many parallels between the 2021 NFTs with the 2017 ICOs and the altcoins in 2013”, he mentioned.
“Few will stay and have worth, most is not going to”, Lee mentioned, drawing parallels between NFTs and ICOs.
I see a whole lot of parallels between 2021’s NFTs with 2017’s ICOs and 2013’s altcoins:
– 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
– few will maintain & have worth, most will not
– Charlie Lee [LTC⚡] (@SatoshiLite) March 2, 2021
The NFTs had a growth in late 2020 and that extends to now. The full worth of the sector, which was lower than US $ 300 million in 2019, grew to greater than US $ 1 billion in 2020, to the present US $ 3.4 billion.
Tokens are a digital illustration of tangible and intangible objects (comparable to actual property, digital artwork, music, amongst different issues), which show the possession of the rights of every part that’s represented.
For Charlie Lee, the sudden development of the NFTs market is just like ICOs. In your tweet from yesterday, he listed a few of these similarities:
- they’re simple to create;
- easy to know and clarify;
- brings tons of latest folks into cryptocurrencies;
- excessive costs and bombs create hype / FOMO.
In 2017, it’s value remembering, greater than 10,000 cryptocurrencies had been created by so-called ICOs, nonetheless, not less than 94% of them ceased to exist, with the vast majority of initiatives having died and leaving their traders at a loss.
The explanation? They had been simple to create and anybody launched a brand new altcoin, typically with out a stable undertaking, however nearly everybody needed to purchase an ICO to be a part of the craze and never miss the “alternative”.
Charlie Lee’s warning just isn’t unfounded. A Twitter profile often known as “DeFi Ted”, shared his experiences with NBA NFTS, he mentioned the platform didn’t course of a withdrawal request, which made him query the solvency of the undertaking.
Right here is the complete break down of my expertise with Dapper labs.
– DeFi Ted (Bakes) (@DeFi_Ted) March 2, 2021