By Garrett Baldwin , Economist , Money Morning &bull, December 20, 2018
Commence the conversation
Litecoin founder Charlie Lee made a stunning announcement on Reddit early this morning (Dec. 20, 2018): He’s going to sell almost all of his litecoins.
Lee said he “sold and donated” all of his holdings te latest days, with the exception of several physical ones that he plans to keep spil “collectibles.”
Why Lee made this decision is the subject of much scrutiny, but it’s best to let him explain the reasoning ter his own words…
Litecoin Prices Explode ter 2018
At the commence of 2018, one litecoin cost $Four.33. Since then, the crypto coin has climbed 7,216%, to $316.80 vanaf coin.
And the rally has bot tied to three main factors.
The very first is Coinbase adding Litecoin te May, making it lighter for the average investor to own the cryptocurrency. The 2nd is a marketing thrust from Lee and the Litecoin Foundation, highlighting the benefits of his crypto coin.
The third is a combination of the price of Bitcoin skyrocketing and uncertainty about its future. Just one bitcoin now costs more than $16,000, making Litecoin more affordable. Investors are also hesitant about the future of Bitcoin thanks to hard forks.
But spil prices climb, one person hasn’t bot entirely persuaded by Litecoin’s incredible price surge overheen the last 12 months: Charlie Lee.
Last week, Lee took to Twitter Inc. (NYSE: TWTR) to punt a warning to investors about the high risks of price volatility ter the cryptocurrency market.
“Sorry to spoil the party, but I need to reign te the excitement a bit…” he wrote.
“Buying LTC is enormously risky. I expect us to have a multi-year bear market like the one wij just had where LTC dropped 90% ter value ($48 to $Four). So if you can’t treat LTC ripping off to $20, don’t buy!”
Lee also argued that even tho’ cryptocurrency prices have exploded overheen the last year, blockchain has scarcely reached its potential.
Why Is Charlie Lee Selling Litecoin?
Lee says that his ownership of Litecoin spil a cryptocurrency has created a conflict of rente.
Spil an avid Twitter user with 384,000 followers, Lee says that he has avoided sending messages related to the price of Litecoin.
However, this has created a challenge due to his influence spil the creator.
Lee notes that any statements he makes about the development can and do thrust the price of Litecoin ter different directions.
“I have always refrained from buying/selling LTC before or after my major tweets, but this is something only I know. And there will always be a doubt on whether any of my deeds were to further my own individual wealth above the success of Litecoin and cryptocurrency ter general,” he said.
Lee concluded his lump by stating that he will find success with Litecoin’s growth.
“This is undoubtedly a weird feeling, but also somehow refreshing. Don’t worry. I’m not quitting Litecoin,” Lee said on Reddit.
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