Non-fungible token art lacks scarcity, like „real art“, says Lee
Non-fungible tokens are a big topic in the crypto space right now. Among creators and collectors alike, the division is becoming increasingly popular.
However, Litecoin (LTC) creator Charlie Lee doesn’t think the hype can sustain like this for long. In a tweet on Monday, Lee said that unlike „real art“, there would be „zero cost“ in NFTs.
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: https://t.co/ucmu8KB1Us
– Charlie Lee [LTCâš¡] (@SatoshiLite) February 15, 2021
According to Lee, artists in the real world are limited in terms of time and effort. He compares this constraint to proof-of-work. For Lee, this Bitcoin Method review constraint creates scarcity and thus value for artworks created by famous artists.
„NFTs, on the other hand, create an artificial scarcity,“ Lee said. He added: „Since it costs almost nothing to create another NFT, the market will eventually be flooded with NFTs by artists trying to profit from this craze. Supply will outstrip demand and prices will eventually collapse.“
Lee thus echoes common criticisms of NFTs. However, there is a case to be made that the art scene, both real and digital, is awash with reproductions. The value of the piece often depends on the artist. Collectors pay attention to the creator of an artwork to distinguish it from other imitations.
The ability to cryptographically sign artworks is another often-cited advantage of NFTs. Artists can thus include metadata, file links and other necessary copyright elements.
With NFTs, scarcity is a kind of consensus
This is why an extremely rare Alien CryptoPunk sold for 605 Ether (ETH) in January. While it would be possible to replicate this rare piece, it would not be part of the collection created by Larva Labs in 2017.
Hashmasks is another NFT collection and has created 16,384 „cards“ that sold for over $10 million in the first four days, Cointelegraph reported.
Lee also apparently limits NFTs to art only in his criticism, leaving out the collectible scene with its in-game assets and digital land. In early February, nine digital properties on the virtual world Lunacia were sold for around US$1.5 million.