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Tether (USDT) Flips Litecoin (LTC) In a Sign of the Times

Cryptocurrency, Litecoin (LTC), Tether (USDT)–As the crypto markets fall into another price rout to kick off the final month of the year, with the price of Bitcoin dropping below $3800, controversial stablecoin USDT has managed to flip Litecoin to become the seventh largest cryptocurrency by market capitalization.

Litecoin, the invention of industry mainstay Charlie Lee and often described as the silver to Bitcoin’s gold, has been in near continuous price fall since reaching an all time high of $350 in December 2017. While the coin has tracked value of Bitcoin closely over the year, moving in a similar direction as the number one currency by market capitalization, it was a series of related events that set off the precipitous price fall last December which led to the 91 percent drop in value.

The rise of Bitcoin Cash including the Coinbase listing fiasco led to a fast erosion of BTC pricing, as investors became unsure of which coin would reign supreme following the bull run. This had subsequent effects on LTC pricing, which, as previously mentioned, has typically moved in price alongside Bitcoin. In addition, founder Charlie Lee, who had established himself as an integral and beloved leader for the currency and community of LTC, announced he had sold his entire holding of the coin and would gradually be making efforts to distance himself from the project in an effort to promote decentralization. Charlie also made a series of Twitter posts cautioning investors to not get too greedy in the bull run, and to expect a severe bear market following that could last for several years (a prediction which has proven salient in the closing month of 2018.

While some came to the defense of Lee, stating that his actions would benefit Litecoin in the long-run by removing himself as the focal point for the currency, many investors felt that Lee had acted irresponsibly with his announcements, in particular given the timing of the sell-off coinciding with LTC reaching an all time high. The end result was a disastrous drop in price, similar to that experienced by nearly all altcoins throughout 2018, with the price of LTC extending well below what it traded for midway through last year.

Tether, the parent company behind USDT, has not been without its share of controversy this year despite seeing its token climb the ranks of market capitalization. USDT, unlike most cryptocurrencies, has its value pegged to that of a single U.S. dollar. While the currency is supposed to backed 1:1 with dollars held in reserve by Tether, a series of investigations and self-auditing has failed to provide definitive proof to investors, even with the company changing banks in November.

Given the severity of the bear market throughout 2018, it’s unsurprising that more development focus is switching away from market-valued cryptocurrencies to coins that provide similar features but with the price stability of an external source. Last month, EWN reported on a gold-backed stablecoin being featured in an article by Bloomberg on the the best investment advice for 2019. Just yesterday, Chinese crypto billionaire Li Xioalai provided an update on his position leading up a new stablecoin, despite previously making remarks that he would no longer invest in blockchain projects due to corruption.

While cryptocurrency adoption remains on the rise with most community members optimistic for 2019 and beyond, the rise of stablecoins could continue a trend that sees price-unstable coins, such as Bitcoin and Litecoin, failing to find favor for developers and those accepting the coins for marketplace transactions.

The post Tether (USDT) Flips Litecoin (LTC) In a Sign of the Times appeared first on Ethereum World News.

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Tether (USDT) Flips Litecoin (LTC) In a Sign of the Times

Cryptocurrency, Litecoin (LTC), Tether (USDT)–As the crypto markets fall into another price rout to kick off the final month of the year, with the price of Bitcoin dropping below $3800, controversial stablecoin USDT has managed to flip Litecoin to become the seventh largest cryptocurrency by market capitalization.

Litecoin, the invention of industry mainstay Charlie Lee and often described as the silver to Bitcoin’s gold, has been in near continuous price fall since reaching an all time high of $350 in December 2017. While the coin has tracked value of Bitcoin closely over the year, moving in a similar direction as the number one currency by market capitalization, it was a series of related events that set off the precipitous price fall last December which led to the 91 percent drop in value.

The rise of Bitcoin Cash including the Coinbase listing fiasco led to a fast erosion of BTC pricing, as investors became unsure of which coin would reign supreme following the bull run. This had subsequent effects on LTC pricing, which, as previously mentioned, has typically moved in price alongside Bitcoin. In addition, founder Charlie Lee, who had established himself as an integral and beloved leader for the currency and community of LTC, announced he had sold his entire holding of the coin and would gradually be making efforts to distance himself from the project in an effort to promote decentralization. Charlie also made a series of Twitter posts cautioning investors to not get too greedy in the bull run, and to expect a severe bear market following that could last for several years (a prediction which has proven salient in the closing month of 2018.

While some came to the defense of Lee, stating that his actions would benefit Litecoin in the long-run by removing himself as the focal point for the currency, many investors felt that Lee had acted irresponsibly with his announcements, in particular given the timing of the sell-off coinciding with LTC reaching an all time high. The end result was a disastrous drop in price, similar to that experienced by nearly all altcoins throughout 2018, with the price of LTC extending well below what it traded for midway through last year.

Tether, the parent company behind USDT, has not been without its share of controversy this year despite seeing its token climb the ranks of market capitalization. USDT, unlike most cryptocurrencies, has its value pegged to that of a single U.S. dollar. While the currency is supposed to backed 1:1 with dollars held in reserve by Tether, a series of investigations and self-auditing has failed to provide definitive proof to investors, even with the company changing banks in November.

Given the severity of the bear market throughout 2018, it’s unsurprising that more development focus is switching away from market-valued cryptocurrencies to coins that provide similar features but with the price stability of an external source. Last month, EWN reported on a gold-backed stablecoin being featured in an article by Bloomberg on the the best investment advice for 2019. Just yesterday, Chinese crypto billionaire Li Xioalai provided an update on his position leading up a new stablecoin, despite previously making remarks that he would no longer invest in blockchain projects due to corruption.

While cryptocurrency adoption remains on the rise with most community members optimistic for 2019 and beyond, the rise of stablecoins could continue a trend that sees price-unstable coins, such as Bitcoin and Litecoin, failing to find favor for developers and those accepting the coins for marketplace transactions.

The post Tether (USDT) Flips Litecoin (LTC) In a Sign of the Times appeared first on Ethereum World News.

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Litecoin Creator Bullish on Bitcoin, Advises Buying 1 BTC

Litecoin (LTC)–Litecoin creator, managing director of the Litecoin Foundation, and frequent media figure Charlie Lee has been a mainstay in the industry of cryptocurrency going back to the beginning of the decade. After graduating from MIT with a degree in Computer Science, Lee took the road to Silicon Valley and worked as an engineer with Google for most of the 2000s, including writing code for the Chrome OS.

In 2011, Lee became interested in Bitcoin, which led to part of his time at Google being spent working on developments related to blockchain. By the end of the year, he had created a fork of Bitcoin, which became the currency we know today as Litecoin. The idea behind Litecoin was simple: improve upon the groundwork laid by Bitcoin, and create a similar cryptocurrency that would serve as the perfect “testing ground” for BTC and crypto innovation. Lee focused on improving the transaction utility of Bitcoin, creating a currency with shorter confirmations, leading to faster transfer speeds and lower mining fees. In addition, he raised the max supply of the currency to four times that of Bitcoin, providing more liquidity to the market in addition to keeping the price per coin lower.

While Lee has been a strong proponent of his offspring currency, he has also maintained a role as a figure of authority and information in the space of cryptocurrency. After leaving Google in 2013, Lee took a position with U.S.-based exchange Coinbase, which eventually led to Litecoin being listed on their limited supply of cryptocurrencies (Lee contends he did not directly influence Coinbase’s decision to list LTC). Given his close relationship with both Litecoin and the cryptocurrency community, he shocked the industry last December when he announced he had sold his entire holding of LTC. Citing a conflict of interest in promoting Litecoin and LTC news, Lee argued that removing himself from a monetary relationship with the coin was in the best interest for its future.

“[W]henever I tweet about Litecoin price or even just good or bads news, I get accused of doing it for personal benefit. So in a sense, it is conflict of interest for me to hold LTC and tweet about it because I have so much influence.”

Instead, the market reacted as expected, sharply declining from an all time high of 370 USD before steadily dropping throughout 2018’s prolonged bear cycle.

Lee has continued to make headlines in the crypto space by making regular appearances on traditional media outlets, promoting the potential of cryptocurrency despite its volatility, and his continued efforts to support LTC through his position with the Litecoin Foundation. However, today Lee made a direct appeal to cryptocurrency investors by reminding them of the scarcity involved in Bitcoin, in addition to the wisdom of buying BTC over altcoins. Speaking in a Twitter post, the LTC Founder recommended all investors secure a full Bitcoin before looking to other currencies,

“There will be at most 21 million bitcoins in existence. There isn’t even enough BTC to go around for EVERY millionaire to own one. So before you buy any other coin (LTC included), try to own at least 1 BTC first. Once you have 1 BTC, buy all the s**tcoins you want!”

It’s not a surprise to hear Charlie Lee be bullish on the outlook of Bitcoin–he has been an industry supporter for many years which includes backing BTC–but it is surprising his investment advice neglects promoting his own currency at the expense of Bitcoin. However, this also reveals why much of the industry of crypto has found Charlie to be such an endearing figure: he has regularly put what is best for the industry ahead of his own promotion.

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