The Litecoin founder believes the price of NFTs will eventually crash because supply will overwhelm demand.
Litecoin founder Charlie Lee has warned that he sees “a lot of parallels” between this year’s non-fungible token craze and previous trends that have gripped the crypto world.
In his latest warning on NFTs, Lee claimed that the current state of the collectibles market is similar to the ICO boom of 2017, and the altcoins craze that was seen in 2013. (Eerily, they also seem to follow four-year cycles, just like Bitcoin does.)
Lee set out five parallels in particular. The first was that it’s easy to create new NFTs with few barriers to entry. NFTs are also simple to understand and explain — and this results in “tons of new people” flooding into the space. He added that hype and FOMO starts to emerge as prices pump. But here’s the problem: few NFTs will hold and have value in the years to come… and according to him, “most won’t.”
Seemingly anticipating that his views might not go down well on Crypto Twitter, Lee tellingly decided to set the tweet so no one would be able to reply to it.
Lee Doubles Down
The latest tweet comes a couple of weeks after Lee predicted that the price of NFTs will eventually crash because supply will overwhelm demand.