Litecoin (LTC) Creator Fires Back at Bearish Traders and Hedge Funds
Similar to most other major altcoins, the bearish outlook has resulted in a significant spike in Litecoin short interest, which now totals over $8.6 million on the Bitfinex crypto exchange.
The latest and most prominent attack against Litecoin came from Multicoin Capital, a sizeable crypto hedge fund backed by notable VC Fred Wilson with $75 million AUM, which called Litecoin a “relic of the pre-smart contract platform crypto ecosystem” in a recently published report.
Multicoin goes on to break down multiple factors making up the firm’s bearish thesis, including the increasing usability of Bitcoin, the lack of a differentiated roadmap and questionable development activity through 2018.
In response to the report, Lee published an 11-tweet response, shown in full below, that goes point-by-point in an attempt to dispel the assertions made by Multicoin Capital.
1/ Recently, there has been a concerted effort to suppress Litecoin price by people/funds that are shorting LTC and by groups that see Litecoin as a threat. I will clear up this FUD and show why Litecoin has tremendous value.
— Charlie Lee [LTC⚡] (@SatoshiLite) September 20, 2018
While there has not been an official response by Multicoin, LTC is currently up over 4.5% to $57.00 as the crypto market gains ground.
Full Transcript From @SatoshiLite
FUD: Litecoin has lost its edge and can’t differentiate itself from hundreds of other altcoins.
TRUTH: Litecoin has one of the most secure networks of all altcoins. Litecoin has over $150MM of ASIC hardware protecting it. Litecoin dominates Scrypt mining by far.
Miners have no incentives to attack the network because it will destroy the value of their ASIC hardware. Litecoin has a ton of liquidity, which is important for people to get in/out of LTC. It is on practically every fiat and crypto exchange (Gemini soon), even more than ETH.
Litecoin is supported by 9+ payment processors: Aliant Payment, BTCPay, Coinbase, CoinGate, CoinPayments, Globee, GoCoin LTCPay, and TravelbyBit. This makes it extremely easy for merchants to accept LTC. There are too many LTC merchants to count!
Litecoin processes $200MM worth of transactions each day. And the network has worked flawlessly for 7 years! Litecoin works today as a global decentralized sound money, that can’t be censored, can’t be reversed or taken away, can’t be counterfeited, and can’t be devalued.
FUD: Litecoin is no longer needed now that Bitcoin can scale with LN.
TRUTH: Many of the LN clients and apps also support LTC because they see the value of Litecoin. With atomic swaps, LTC interoperates with BTC on the Lightning Network.
Litecoin will always be the cheapest and fastest on ramp to Lightning Network. And with solutions like submarine swaps, you can use on chain LTC to pay for a BTC lightning invoice!
We will also have decentralized exchanges using atomic swaps. The possibilities are endless.
FUD: Litecoin as Bitcoin’s testnet is not worth $3B.
TRUTH: Even if Litecoin’s only use case is a testnet, you can’t put an absolute value on it. Need to look at it relative to Bitcoin. Litecoin’s marketcap is only 3% of Bitcoin’s marketcap. That is not very large at all!
Litecoin helped Bitcoin activate SegWit last year by proving the game theory of SegWit in practice. Bitcoin’s own testnet3 can’t do it because testnet3 coins have no value, so no incentives for malicious actors to hack it. Litecoin helps Bitcoin. That is extremely valuable.
FUD: Litecoin has no development in the past 6 months.
TRUTH: We don’t work on the master branch, where people are looking. This is generally good Git practice! Proof: we released 0.16.2 last week and just released 0.16.3 today, which fixed the recent critical DoS bug.
FUD: Charlie has quit Litecoin and doesn’t care anymore.
TRUTH: I’m working on Litecoin full-time and focused on Litecoin adoption. Proof: the fact that I spent time writing these 11 tweets!
Litecoin also has the strongest crypto community.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.