The founder of Litecoin, Charlie Lee, has divested himself of his entire holdings in the cryptocurrency. (See also: What is Litecoin And How Does It Work?)
In a post on online forum Reddit, Lee, who created the cryptocurrency in 2011, announced that he had “sold and donated” his holdings in LTC. “For the first time in 6+ years, I no longer own a single LTC that’s not stored in a physical Litecoin,” he wrote. Lee attributed his decision to remove the “conflict of interest” that arises from his public statements regarding Litecoin’s price movements. (See also: Could Litecoin Be A Better Investment Than Bitcoin?)
For example, he appeared on CNBC just as Litecoin’s price began its run-up to doubling its value in two days. Lee also tweeted out a warning about the cryptocurrency’s recent price rise. But it did not have any effect on Litecoin’s prices, as the cryptocurrency shot up by 90% during that time period.
“I have always refrained from buying/selling LTC before or after my major tweets, but this something only I know,” Lee wrote in his Reddit post, adding that doubt would always remain whether his actions were to further his personal wealth over Litecoin and cryptocurrencies. (See also: Litecoin Founder Calls For Caution).
Litecoin was launched as the silver to bitcoin’s gold. Lee’s vision is that of a cryptocurrency for use in daily transactions, as opposed to bitcoin, which is a store of value. In his interviews, Lee has said that it will be “many years” before his vision comes to fruition.
But that hasn't stopped investors and traders from trying to profit off the digital currency. Litecoin’s price has skyrocketed by 7,742% since January 2017, as of this writing. It witnessed two significant price spikes this year. In addition to its most recent price hike, the cryptocurrency’s price exploded after Asian investors rushed to trade it back in June.
Charlie Lee’s sale is unlikely to affect Litecoin’s price movements in the long run, especially as he claims that his sale amounted a “small percentage of GDAX’s daily volume.” (See also: Litecoin's Phenomenal Year.)
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