Charlie Lee Defends Litecoin Against ‘FUD’ from Short-Sellers

Litecoin creator Charlie Lee is hanging again at what he calls a “concerted effort to suppress” the LTC value on the social gathering of bearish merchants and hedge funds who’re trying to quick the coin.

Writing in a thread posted on Twitter, Lee — who created LTC in 2011 and now develops it full-time — mentioned that he needed to clear up “FUD” circulated by teams that “see Litecoin as a threat.”

Lee was apparently responding to an explosive report from cryptocurrency hedge fund Multicoin Capital which, amongst different issues, mentioned that litecoin was a “significantly overvalued” and a “relic” from an ancient times of cryptocurrency improvement.

In the report, which was authored by managing associate Tushar Jain, Multicoin laid out its justification for being quick LTC, alleging that the coin faces quite a lot of “negative catalysts” and not using a adequate variety of bullish elements to offset them.

Specifically, Jain alleged that the cryptocurrency market is maturing and that belongings like litecoin that — in his view — would not have compelling use circumstances will likely be unnoticed of the subsequent bull rally.

He additional argued that litecoin faces extreme promote stress, not solely from LTC mining but additionally from cryptocurrency mining agency Bitmain, who’s reportedly sitting on upwards of 1 million LTC whereas additionally actively selling bitcoin money, a coin that’s competing with litecoin to be the cryptocurrency of selection for on a regular basis funds.

Charlie Lee Litecoin
LTC creator Charlie Lee | Source: YouTube/Crypto Channel

Responding to those criticisms and others, Lee argued that, in contrast to many altcoins, LTC is extremely safe as a result of truth that it’s the dominant coin that makes use of the Scrypt mining algorithm, making it unprofitable for miners to assault the community.

He additional mentioned that, far from rendering litecoin out of date, the appearance of second-layer scaling options just like the Lightning Network (LN) will additional assist LTC, since they render the coin interoperable with bitcoin.

“Litecoin will always be the cheapest and fastest on ramp to Lightning Network. And with solutions like submarine swaps, you can use on chain LTC to pay for a BTC lightning invoice!” he mentioned. “We will also have decentralized exchanges using atomic swaps. The possibilities are endless”

At current, litecoin is the seventh-largest cryptocurrency with a circulating market cap of $3.2 billion. LTC is trading at $54.75, which represents an 85 p.c decline from the coin’s all-time excessive at $375.29, per information from OnChainFX. Though stark when considered in isolation, that efficiency is corresponding to the broader large-cap cryptocurrency index, with most main altcoins having skilled peak-to-trough declines ranging from 77 p.c to 96 p.c.

Featured Image from Shutterstock

Follow us on Telegram or subscribe to our publication here.
Join CCN’s crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.


Source link

Be the first to comment

Leave a Reply

Your email address will not be published.