The Litecoin creator Charlie Lee is not really convinced about NFTs despite their hype taking over the crypt space in the past few weeks. But why is this the case? Let’s try and find out in our Litecoin news.
Plenty of people are skeptical about non-fungible tokens as the new crypto hype has been overwhelming the market in the past few weeks. The Litecoin creator Charlie Lee is not convinced on the NFT hype as for those who don’t know, these are types of cryptographic tokens that can be used to represent something unique like art or real estate in the real world:
“The problem with NFTs is that they are Non-Finite Tokens. There is zero cost to create an unlimited number of tokens. Sure, Justin Roiland’s NFT is unique and awesome. But what’s stopping Matt Groening or Mike Judge or thousands of other artists from creating millions of new NFTs?”
The problem with NFTs is that they are Non-Finite Tokens. There is zero cost to create unlimited number of tokens.
Sure, Justin Roiland's NFT is unique and awesome. But what's stopping Matt Groening or Mike Judge or thousands of other artists from creating millions of new NFTs? https://t.co/anlEmfhmPW
— Charlie Lee [LTC⚡] (@SatoshiLite) February 15, 2021
The Litecoin creator said that the real-world art is not set at zero cost, unlike the NFT market. He said that with the amount of money, time and effort that artist put in one piece of art is an effective “Proof of Work” with many artists creating a few thousand art pieces in their entire life which it can bring more scarcity that helps the value high. The NFT market is none of that as he said:
“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.”
— Nick Tomaino (@NTmoney) February 10, 2021
Despite starting a tweetstorm, Lee clarified that his position on NFTs doesn’t mean that the digital artwork didn’t take time or effort. He noted that this work takes time and effort and holds its value but the NFT was not the artwork itself:
“Creating the NFT is cheap.”
Market speculators pumped the digital token art sector over the past few weeks as the data shows there were more than $20 million worth of tokens exchanging hands in the past month and more than four times that of the month before. In the meantime, Lee issued his own Twitter profile picture as an NFT on OpenSea and users have already bid over 1 ETH for the rights to hold his Twitter profile picture.
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