There has been a huge surge in interest around NFTs of late with many mainstream use cases and pieces coming to the fore. There has been a rapid rise in NFT interest with there not being too much understanding behind. Additionally, a lot of money is being thrown into this space.
This has drawn parallels between the ICO craze of 2017 and the different tokens that promised so much and this current round of NFT hype. In fact, this distinction has been drawn by Litecoin founder, Charlie Lee.
Lee provided at least five similarities between 2021’s NFT popularity and 2017’s ICO mania, also comparing both to the altcoin craze in 2013 in a tweet.
The biggest hype waves seen in the cryptocurrency space are probably the altcoin hype in 2013, followed by the ICO maina of 2017. Now, NFTs are showing similar signs to those other phases that have already been seen.
According to the Litecoin creator, all three cryptocurrency phenomena look very similar, as they are easy to create “with no barriers” and simple to understand and explain. Lee noted that NFTs, ICOs and 2013’s altcoins also have a big similarity in terms of adoption — as all of them bring, or used to bring, “tons of new people into crypto.”
However, where it gets concerning is that there are large amounts of money being associated with this phase and it has that feeling of not wanting to miss out. However, “Few will hold and have value,” and most people did not or will not own them, Lee concluded.
Lee has not held back on NFT criticism in the past bringing up the fact that they come from nothing and have zero costs to create.
“Because of the near zero cost to create another NFT, the market will eventually be flooded with NFTs from artists trying to cash in on this craze. Supply will overwhelm demand and the prices will eventually crash,” the creator of Litecoin predicted.
Michael Goldstein, president of the Satoshi Nakamoto Institute, also tweeted Monday that “NFTs are the ICOs of 2021.”