Litecoin in an awkward position

                                                                     

Recently, the well-known cryptocurrency hedge fund Multicoin Capital published a research report on Litecoin. Its views are very similar to those of Li Xiaolai. They think that Litecoin LTC is very good at ‘telling stories.’

Multicoin Capital is a small-sized cryptocurrency investment fund, but the impact is not small. The two founders of the fund, Kyle Samani and Tushar Jain are known for their expertise in publishing cryptocurrency market investments. They released an article this time, saying that they are looking down upon Litecoin.

They believe that although the Litecoin price has fallen a lot, the price is still seriously overvalued and will continue to bear downward pressure.

However, Multicoin Capital more directly pointed out that ‘the story describing the Litecoin value seems to be fundamentally inaccurate and fundamentally lacks strong evidence to support it.’ These stories do not support the currency of Litecoin.

In fact, Litecoin has always been important in cryptocurrencies, with many miners and many investors, and has always been regarded as a basic cryptocurrency. At present, the market value of Litecoin is about US$3 billion, and a large number of cryptocurrency exchanges offer Litecoin trading pairs.

The most famous saying about Litecoin is: ‘Bitcoin Gold, Litecoin Silver.’ Because of this statement, Litecoin has always been called a value reserve tool. Advocates of the cryptocurrency community often say that ‘Litecoin is the test network for Bitcoin BTC,’ or ‘the best transaction intermediate for cryptocurrency exchanges is Litecoin.’

However, Multicoin Capital confirmed that these statements are inaccurate and that the cryptocurrency market has matured and is already quite different from the environment in which Litecoin surged before 2017.

In addition, the fund believes that the founder of Litecoin Charlie Lee sold all the Litecoin he held at the end of last year is an extremely dangerous signal.

On December 20, 2017, Charlie Lee, one big Litecoin news came out that the founder of Litecoin announced that he sold the Litecoin he held, at a price of about $322. Charlie Lee has been criticized for this. People think that this practice hurts the community’s information about Litecoin. However, Charlie Lee’s claim is that he sold his own Litecoin, which can maintain the decentralization of the project, maintain financial distance from Litecoin, and avoid other conflicts of interest.

However, Multicoin Capital believes that ‘Charlie Lee sold all the Litecoin he held, and it has no substantive relationship with Litecoin. The founder emptied his own rights and went out, it is a huge red alarm. Now there is no incentive to benefit, he himself promotes The power of the Litecoin network to develop and improve the value of the agreement has greatly declined. In order to achieve the latter goal, we believe that his original better practice should be to lock the position within a certain period of time or to use his currency to help the Litecoin network.’