Billionaire Chamath Palihapitiya says one crypto sector is in classic bubble cycle
Billionaire investor and tech entrepreneur Chamath Palihapitiya says a crypto sector may be in the middle of a classic hype cycle.
In a new All-In podcast, the CEO of Social Capital addresses the massive drop in trading volume in the non-fungible token (NFT) market.
Palihapitiya uses the example of Burning Man and Coachella, two major music festivals that aim to be unique but may end up being largely the same.
The billionaire compares the two music festivals to NFTs and the general art market.
“I think there’s this thing – the Burning Man/Coachella example is the best way to describe it. A lot of these things are the same, but when some people approach something early, they’re too insecure to admit that is the same as anything else, and so they spend a lot of time trying to tell you a narrative about why it’s completely different. The Buffett example would be the quote: “When someone tells you this time is different, it probably isn’t so different.” Or the other quote well-worn in history is, “Things don’t necessarily repeat themselves in history, but they do rhyme.”
All this is trying to say, apart from fundamental leaps in science, there is not much that is new in the world. We repeat things over and over and one of the things we repeat is the social capital you get from having certain choices and then having other people validate those choices because you want to feel like you’re worth it. And this happened in NFTs, and I’m sure it also happened in the first phase in various movements in the arts. It’s probably happened in a bunch of other markets too, so these things are more similar than they are different.
Coachella and Burning man: the same. NFTs and part of the art market: the same. Anyone running at you with why it’s so different, I’d just take it with a grain of salt and say, “It doesn’t have to be different, you can just enjoy it because you think it’s cool.”
According to DappRadar, trading volume on leading NFT marketplace OpenSea hit a one-year low earlier last week.
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