Billionaire investor and tech entrepreneur Chamath Palihapitiyathinks that a sector in the crypto industry could be in the middle of a classic hype cycle.
Social Capital CEO, who participated in the All-In podcast, did not miss the big drop in trading volume in the NFT market and shared his comments.
Palihapitiya shared his interpretation of the industry using the example of Burning Man and Coachella, two large-scale music festivals that aim to be unique but are perhaps mostly the same thing.
Billionaire, two music festivals NFT compares the industry and the general art market.
“I think it’s easy to describe these events with the Burning Man/Coachella example. While many of these are the same, a few people are too insecure to admit that when they approach something early, they are too insecure to admit it’s the same as anything else, and so they make an effort to fully explain to you why it happened. I could also take the example of Buffett, ‘When someone tells you that this time is different, it’s probably not that different’.
All this is actually a narrative that tries to say that there isn’t much that is new in the world, except for the fundamental leaps in science. We repeat things over and over, and one of the things we repeat is the social capital you gain from having certain choices and then having other people validate those choices because you want to feel valued.
And that’s what happened with the NFTs, and I’m sure that was the case in the early stages of the different movements in the arts. It’s probably happened in a bunch of other markets as well, so these things are more alike than they’re different.
Coachella and Burning man are essentially the same. Same with NFTs and part of the art market. Anyone who ran into you why it was so different, I would just take a grain of salt and say, ‘It doesn’t have to be different, you can just enjoy it because you think you’re cool.
According to DappRadar, trading volume on the leading NFT marketplace OpenSea hit a one-year low early last week.
You can follow the current price action here.
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