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Litecoin (LTC) Founder, Charlie Lee, Says No Money Paid In Acquiring Stake In German Bank

Litecoin (LTC) Founder Charlie Lee has initiated an Ask Me Anything (AMA) on Reddit to proffer answers to certain gray areas regarding Litecoin Foundation’s partnership with TokenPay which resulted in the later transferring 9.9% stake acquired in WEG Bank to Litecoin. Charlie made it clear in the update that Litecoin Foundation did not pay anything in the acquisition of the said stake.

In the introductory message posted on Reddit, Charlie highlighted that there is a very clear difference between Litecoin and the Litecoin Foundation.

He said Litecoin is a decentralized network and currency while Litecoin Foundation (LF) is a centralized non-profit organization with the mission of advancing the development, adoption, and usage of Litecoin.

While reiterating that he created Litecoin, Charlie also confirmed that he is the Managing Director of the LF.

He said, “Litecoin doesn’t need LF or me for that matter, but I’m working hard with LF to make Litecoin a success”.

“If LF is not doing a good job, nothing prevents another organization to step up and do better. This exact situation actually happened last year when the LF came into existence because the Litecoin Association wasn’t doing a good job.”

He clarified that money invested into buying LTC does not go to the pocket of LF. However, Charlie is of the opinion that LF is working for Litecoin users for free to help increase the value of their investment.

Litecoin Foundation Partners TokenPay

Charlie continued by letting the crypto space understand that Litecoin Foundation is the firm that partnered with TokenPay Swiss AG (TP) in a deal to acquire a stake in a German bank, WEG Bank AG, and the partnership is not between Litecoin and TokenPay.

“This partnership is between LF and TP. The deal is that LF receives the 9.9% stake in the bank in exchange for technical work and marketing support for TokenPay, eFin decentralized exchange, and integration with the bank,” he said.

“To be clear, LF did not pay any money for this stake in the bank. The plan is also for me to get a board seat at the bank.”

Litecoin In The Market

The market is full of euphoria and most coins in the market are appearing with green colour as they stand to add more to their value as time pass by. Litecoin, the 6th largest coin according to market cap, known for its proficiency in everyday use is among the greener in the market today.

Even though Litecoin is ranked 6th on the table, it is sometime regarded among the first three most popular coins in the market.

Today, according to coinranking, Litecoin is been priced 84.13 against Dollar after adding 0.45% to its value in the last 24hrs. Similarly, in the last 7 days, the altcoin added 10.23% to its value. In a contrary manner, the last 30 days of the altcoin was featured with a drop in value when comparing the starting value ($96.74) with the present value. Litecoin’s value in the last 30 days dropped by 13.70%.

The present market cap of Litecoin is $4.83 billion, while $275.76 million represents its 24hrs trade volume.


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Tether (USDT) Prints Additional 250 million USD, Investors Wait For Market Response

TETHER (USDT)--Tether, the controversial coin that purports having a 1:1 relationship with US Dollar reserves, has been busy over the past week.

On Wednesday June 20th, the company published a comprehensive review of their currency and holdings, conducted by the firm of former FBI Directive Louis Freeh. While the review did not amount to an actual audit (with some included language that sounded dubiously like a scapegoat), the company did provide solid relief to investors hesitant over the impact USDT has had on crypto markets.

The allegations against Tether date as far back as last October, when it was revealed that the company shared similar ownership with cryptocurrency exchange Bitfinex. Given the implications of an exchange operating a stand-in currency for U.S. Dollars, many pointed out that Bitfinex had an improper incentive for pumping the price of Bitcoin using USDT. If Tether proved to not have the 1:1 backing that the parent company claimed, then Bitfinex was essentially using an empty currency to purchase BTC (thereby pumping the price with relentless buy volume), and then selling at the elevated price for hard currency. The combined force of this speculation was enough to lead to a subpoena by the Commodity Futures Trading Commission (CFTC) for both Bitfinex and Tether last December.

In January, the negative press surrounding Tether deepened when it was announced the company had severed ties with Friedman LLP, a firm hired to perform an official audit on the company’s holding. In addition to driving down the confidence investors held in the USDT coin, it also gave the appearance that the company had something to hide–thereby contributing to the historic amount of FUD that precipitated the market collapse throughout the first half of this year.

Two weeks ago, Coindesk published the findings in a letter that confirmed a relationship between Bitfinex, Tether and the pumping price of BTC during the final quarter of last year. While Tether responded to the criticism by releasing the details of its own review, providing support that the company was fully backed by U.S. Dollars, it still failed to inspire investor confidence and the market subsequently plunged to its lowest point since last October.

On Monday June 25th, Tether followed up on the reports of last week by printing an additional 250 million USDT tokens. The effect has caused many investors to speculate over a looming pump in BTC pricing. While the influx of Tether into the market has previously been met with climbing crypto prices, it has yet to establish a market turn-around throughout the first half of this year. In effect, the gains provided from USDT influx have been short-lived, in particular when compared to the near year-long bull run experienced in 2017.

Charlie Lee, creator of Litecoin, weighed in on the situation by comparing the printing of USDT as an influx of capital by a depositor on an exchange: the funds are there, but how and when they are distributed could range in impact upon the market.

While investors wait patiently for the impact of USDT entering the market, Bitcoin is up nearly 2% as of writing.