With all the recent news about bitcoin's price soaring, it's easy to forget about the other major cryptocurrencies out there. Litecoin, currently the fifth-largest digital currency by market capitalization, had an excellent beginning to the week. In the span of just a few days, the price of the alt coin more than tripled, according to CryptoCoinsNews.
On the digital currency exchange GDAX, litecoin briefly passed $400 per coin, a price point substantially higher than where it has been previously. With the change in price has come a predictable flurry of activity, but at least one major investor in the virtual currency space is cautioning investors to not get greedy.
Mike Novogratz Advises to 'Sell it Here'
Mike Novogratz, the widely-respected trader and bitcoin proponent, spoke out with CNBC about the recent surge in litecoin prices. He said the price of the alternative coin is not sustainable at the levels it reached earlier this week, and recommended that investors "sell it here."
Novogratz is the founder of cryptocurrency-focused hedge fund Galaxy Investment Partners. (See more: New $500 Million Hedge Fund Will Focus on Cryptocurrency.)
Novogratz contrasted litecoin with bitcoin, which he believes to be a buying opportunity for investors in spite of the fact that its price has spiked more than 15 times as of this writing and since the beginning of the year. "I don't think [the litecoin rally] has the same legs as bitcoin," Novogratz stated.
Litecoin Rally Pushed by 'Agile Promoter'
Novogratz suggested that the recent litecoin rally may have been due to the activities of an "agile promoter," possibly the creator of the currency, Charlie Lee, who spoke up about the coin in the media this week.
The rally also may be in part due to recent interest in lightning network technology, which will likely be integrated into litecoin as well as bitcoin in the future. Further, it may be that newer investors in the cryptocurrency space are seeing the price of litecoin and buying it up because it appears to be much cheaper per token than other leading digital currencies.
Novogratz attributed the rally in litecoin to the "speculative mania" which has surrounded the digital currency space. "We are in the middle of a speculative mania, and phase one of this whole decentralized revolution is just selling the story," he said. "None of these protocols are going to be ready for prime time for at least two to three years, so we're selling the story of what the future is going to be."
Nonetheless, Novogratz has been wrong before. He anticipated bitcoin's ascent to more than $10,000 per coin, but he believed that price point would begin a selloff. As of now, its price has continued to climb.