Litecoin Creator Charlie Lee Explains Why Most NFTs Are Not Valuable As People Think

Last Thursday (March 4), Litecoin creator Charlie Lee explained why most popular non-fungible tokens (NFTs) currently for sale are not as valuable as some people assume.

NFT marketplace OpenSea’s NFT Bible says NTFs are “unique, digital items with blockchain-managed ownership” and says that “examples include collectibles, game items, digital art, event tickets, domain names, and even ownership records for physical assets.”

Lee spelt out how he feels about NFTs via a tweetstorm posted on March 4.

He started by defining the term NFT:

Lee’s argument is that an NFT representing a song, a video clip, a photo, or some other digital image is nothing more than a digital certificate of authenticity, and although that certificate is “definitely worth something,” it is not as some might think since “the majority of the value of owning a collectible is lost by switching the ownership from the actual collectible to its certificate of authenticity.”

For example, in the case of NBA Top Shot, which is a marketplace for officially licensed digital collectibles, when you buy a moment NFT, what you are paying for is not a short video clip depicting a highlight from an NBA game (since such clips can be easily download for free) but the certificate of authenticity for that video clip.

To get an idea of how high prices on NBA Top Shot can get, there is currently (as of 21:40 UTC on March 7), a moment featuring a block by LeBron James during a Spurs-Lakes game (from the 2019-2020 season) that took place on 25 November 2019. Only 59 copies of this highlight were minted as NFTs, eight of which are currently listed for sale on the NBA Top Shot platform. The cheapest one is $99,999.00!

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