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The creator of the Litecoin cryptocurrency, Charlie Lee, noted the similarity of the growing popularity of the non-fungible token (NFT) market with the 2017 ICO boom and the 2013 altcoin craze.
I see a lot of parallels between 2021’s NFTs with 2017’s ICOs and 2013’s altcoins:
— easy to create new ones with no barriers
— simple to understand & explain
— brings tons of new people into crypto
— high prices & pumps create hype/FOMO
— few will hold & have value, most won’t— Charlie Lee [LTC⚡] (@SatoshiLite) March 2, 2021
Lee drew five parallels as arguments. Among them are the simplicity of creating and understanding the technology, zero value, attracting a new audience to the industry and high prices due to the hype.
NFTs and ICOs are also supported by celebrities. In February 2018, Hollywood actor Steven Seagal became the brand ambassador of the cryptocurrency startup Bitcoiin2Gen and actively promoted the ICO campaign in social networks.
In February 2020, the Securities and Exchange Commission (SEC) fined the actor $ 314,000 for concealing the reward received from advertising a startup token sale. In February 2021, the SEC accused the partners of Bitcoiin2Gen in fraud for $ 11.4 million.
In March, the singer Grimes sold the NFT collection with unreleased music for $ 6 million.
It is not the first time that the creator of Litecoin has criticized non-fungible tokens. In February Lee predicted the collapse of the NFT due to the “zero cost of their creation”.
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