Charlie Lee, the inventor of Litecoin (LTC), believes the continued rise in popularity of fungible tokens, or NFTs, has a lot in common with the ICO craze of 2017.
The similarity between NFT and ICO draws attention
Lee announced at least five similarities between the NFT popularity of 2021 and the ICO craze of 2017, comparing both to the altcoin craze of 2013 in a tweet on Tuesday.
According to the Litecoin founder, all three cryptocurrency phenomena seem very similar, because they are “barrier-free” easy to create and simple to understand and explain. Lee stated that NFTs, ICOs, and 2013’s altcoins also have a great similarity in terms of adoption. All of them are bringing or bringing “tons of new people to crypto.”
Similar to the high altcoin prices and pumps in 2013, ICOs and NFTs are associated with big hype and FOMO. However, according to Lee, “very few of them will have value” and most people don’t have them.
Lee: “Their values will eventually drop to zero”
Lee earlier expressed some bold criticism of the NFT industry in February, claiming that NFTs have “zero cost” to create.
“Due to the near-zero cost of creating another NFT, the market will eventually be filled with NFTs from artists trying to make money from this madness. The creator of Litecoin, supply will meet demand and prices will eventually drop. ”
Lee is not alone in this idea
Lee is not alone in considering NFTs to be new ICOs, as he has recently drawn parallels between the two main concepts in the crypto industry. Michael Goldstein, head of the Satoshi Nakamoto Institute, tweeted Monday that “NFTs are the ICOs of 2021.”
Andrew Kang, a crypto investor and co-founder of Mechanism Capital, also hinted on Twitter on Tuesday that NFTs are becoming increasingly popular among celebrities who are “able to fool all their fans” and are just looking for profit.
Artists showed interest during the ICO period.
Representing a new way to buy and sell art and media digitally, NFTs have recently attracted the attention of popular celebrities, including Canadian musician Grimes and Linkin Park rapper Mike Shinoda.
Celebrity endorsements form another solid parallel between NFTs and ICOs, as a series of ICOs in 2017 were heavily sponsored by celebrities such as American music producer DJ Khaled and American actor Steven Seagal.