Is Litecoin’s Price Being Suppressed?
Litecoin is facing a prolonged smear campaign that is prompting investors to short the digital currency in ever increasing numbers. Charlie Lee, Litecoin’s founder, recently took to Twitter to clear up the fear, uncertainty and doubt plaguing his protocol over the past three months. In a market that rises and falls on the turn of a speculative dime, Lee’s clarity can’t come a moment too soon.
Campaign Against Litecoin
Lee didn’t mince words on Thursday when he claimed that Litecoin’s price was being purposely suppressed by certain segments of the market. In a ten-post Twitter-storm, Lee explained that people and funds are shorting LTC because of its perceived threat on other protocols that can’t compete with its speed, security and liquidity.
“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.”
Litecoin’s price has plummeted 45% over the past three months and has slipped further away from the market-leading headlines of early 2018. Litecoin appears to have lost all relevancy for laypeople and retail traders new to the space. Case in point: its Google Trend score is currently 2. It peaked at a perfect 100 in mid-December. What’s more, the Trend score has held single digits for over six months. This basically means people aren’t searching for Litecoin.
While people outside of Litecoin may not have noticed, the protocol is better today than it was during the height of the bull market thanks to improvements in Lightning Network, rising transaction volumes and increased support from payment processors. As Lee noted, LTC is supported by more than nine payment processors, including Alliant Payment, BTCPay, Coinbase and CoinGate.
Dispelling the FUD
Below is a rundown of the FUD-inducing headlines that Lee tackled on Twitter.
1. Litecoin can’t differentiate itself from other altcoins.
Lee: Litecoin is protected by $150 million in ASIC hardware and is one of the most secure coins available.
2. There’s no incentive for miners to attack the network because it will undermine the value of their ASIC hardware.
Lee: LTC’s liquidity and availability on practically every fiat-to-crypto exchange makes it one of the most widely available cryptocurrencies on the market (even more than Ethereum).
3. You can’t pay with Litecoin.
Lee: Not only is LTC supported by more than nine payment processors, its merchant acceptance is also growing significantly. LTC processes more than $200 million in transactions each day.
4. Litecoin is irrelevant since bitcoin can now scale with Lightning Network.
Lee: Several Lightning Network clients and apps already support Litecoin because they value the network. With atomic swaps, it’s not an either/or proposition when it comes to LTC and BTC. Also, “LTC interoperates with BTC on the Lightning Network.”
5. As a testnet of Bitcoin, Litecoin is not really worth $3 billion.
Lee: While Litecoin only has one use case (testnet), it has tangible value. Besides, it only has 3% of bitcoin’s market cap.
6. Litecoin has not done anything meaningful development-wise in six months.
Lee: People are looking in the wrong place. Although developers aren’t working on the master branch, they are still active behind the scenes. Versions 0.16.2 and 0.16.3 were released in the last two weeks.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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