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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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Top U.K Firm to Launch Litecoin (LTC) Futures

Back in mid May, Ethereum (ETH) Futures were launched by top U.K trading firm, Crypto Facilities. The same firm is now planning on offering Litecoin (LTC) futures. The report by CoinDesk indicate that the official announcement has not been made but the new investment product on the platform will be available as early as Friday, June 22nd.

The report also indicated that the new product will be offered against the United States Dollar on the platform. Investors will be able to long or short future contracts with Litecoin as the underlying asset as collateral.

The CEO of Crypto Facilities was quoted in the report as saying that:

We believe our LTC-dollar futures contracts will increase price transparency, liquidity and efficiency in the cryptocurrency markets.

However, news of any crypto based futures contracts have been met with mixed reactions by the crypto community for quite some time now. Referencing the past performance of Bitcoin when BTC Futures were offered by CBOE and CME back in December, many of the same crypto traders believe that the BTC futures are the cause of the current decline of Bitcoin to current low levels. Back in December, BTC reached levels of $20,000 only to start a decline the next day after BTC futures were offered by CBOE and CME. BTC continues to decline to this day and is currently trading at $6,662 at the moment of writing this.

The thought of offering Ethereum (ETH) contracts by CBOE was further explored by Ethereum World News when it listed the advantages and disadvantages of such a product after ETH was let off the hook by the SEC.

The first advantage of any crypto-based futures product, is the obvious feel by regular stock market investors, that digital assets are a formal means of investment. These Futures products legitimize the digital asset that backs them. This will then bring the institutional investors en masse into the crypto-verse leading to another rally similar or greater than the one experienced last December.

Two disadvantages of Ethereum futures by CBOE were also noted in the report by Ethereum World News. The first being that the price of Ethereum would enjoy a rally then a decline as was the case with Bitcoin. The second was that traders will learn from the case of Bitcoin, and short Ethereum. Shorting ETH means that the traders would flood the market with Ethereum and further cause a price dip.

In conclusion, the Litecoin futures are a welcome addition to the current products of XRP and BTC futures on the Crypto Facilities platform. Litecoin now gathers legitimacy as a viable investment option for regular stock market traders. Only time will tell of the impact such products have on the price of Litecoin in the future.

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