LitePay, one of the most hyped projects of the Litecoin scene, has abruptly shut down operations, prompting apologies from Litecoin Foundation and Litecoin creator Charlie Lee on Monday.
Kenneth Asare, the Chief Executive Officer (CEO) of payments processor LitePay, informed the Litecoin Foundation "that he ceased all operations and is preparing to sell the company."
(See also: UK Launches Cryptocurrency Task Force.)
Litecoin Creator Apologizes for 'Getting too Excited'
“Like everyone else, we got too excited about something that was too good to be true and we optimistically overlooked many of the warning signs,” read a tweet by Litecoin Foundation's CEO. "I am sorry for having hyped up this company and vow to do better due diligence in the future," he added. In December, Lee indicated that he "sold and donated" almost all of his litecoin holdings.
Like everyone else, we got too excited about something that was too good to be true and we optimistically overlooked many of the warning signs. I am sorry for having hyped up this company and vow to do better due diligence in the future. https://t.co/khIjeHnyZ1
— Charlie Lee [LTC] (@SatoshiLite) March 26, 2018
So much for the LitePay debit card
LitePay claimed it would offer a crypto wallet and a "LitePay debit card" by which users could convert litecoin to U.S. dollars. Litecoin rallied in February, driven by an announcement that would-be litecoin merchant payment processing system LitePay would go live on Feb. 26. In an email to customers earlier this month, LitePay revealed that it was "checking all perspective merchants," and holding off on card registrations "due to the negative perception and drastic actions card issuers have towards cryptocurrency companies."
Trading at $140.20 at 12:20 UTC, LTC is down 7.2% in the 24 hour period, according to Coinbase. The cryptocurrency hit a record high of $339.45 in mid-December 2017, when the crypto craze was at its peak, and reflects a more than 3,000% surge over the most recent 12 months.
"Litecoin was doing perfectly fine before the promise of LitePay and will continue to do so," said the Litecoin Foundation on its website.
The news regarding the world's fifth largest cryptocurrency by market capitalization comes as this week, bitcoin, the world's largest digital coin, dipped below $8,000 on a series of negative headlines including a ban on crypto ads on the Twitter Inc. (TWTR) platform. Jack Dorsey, the CEO of Twitter and Square Inc. (SQ), which has been highlighted as a fintech player set to boom on crypto payments, follows suit of tech powerhouses Facebook Inc. (FB) and Alphabet Inc. (GOOG) as the ban seeks to thwart an increased level of digital currency fraud.
(See also: Bitcoin: Prices Fall on Japan Crypto Crackdown.)
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