August 20, 2022

NFT prices will eventually crash, says Litecoin creator Charlie Lee

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Nonfungible tokens are currently a major topic of discussion within the crypto space, with creators and collectors alike jumping on the bandwagon.

However, Litecoin (LTC) creator Charlie Lee is of the opinion that the hype is unsustainable. Tweeting on Monday, Lee said that unlike “real art,” NFTs have “zero cost” of creation.

With all that said, I’m willing to be proven wrong. I created a unique NFT with my profile pic. It cost me nothing (well except for the ridiculous ETH gas fee) and no effort at all. Prove me wrong and show me that this has value:

— Charlie Lee [LTC⚡] (@SatoshiLite) February 15, 2021

According to Lee, artists in the real world are constrained by time and effort, likening this limitation to proof-of-work. For Lee, this restriction creates scarcity and, therefore, value for art pieces created by famous artists.

“NFTs, on the other hand, create artificial scarcity,” Lee tweeted, adding, “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.”

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Published Date: Mon, 15 Feb 2021 09:40:57 +0000

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