Litecoin Cash (LCC) Slumps After 299% Growth for Week; Quick Rundown
Litecoin Cash (LCC) hit 299% growth over the last seven days, sending it pumping through market cap rankings before sinking by 38% leading into Wednesday morning.
As a hardfork of the Litecoin (LTC) blockchain, LCC coins were distributed on a 10:1 ratio against LTC holdings included in the snapshot on Feb 18th, 2018. A perusal of the Litecoin Cash whitepaper reveals a strong focus on mining.
This recent surge coincided with the build up to Feb 6th’s activation of Hive Mining on the Litecoin Cash blockchain – a feature which will see anything from a Raspberry Pi to a home desktop able to mine LCC.
Litecoin Cash Price
From the weekly low of $0.007345 LCC climbed to a value of $0.0293333 by Tuesday, Feb 5th – a 299% increase.
Mercatox and Cryptobridge handled over 85% of daily trades, which amounted to $77,000 – a two-month high. LCC also finds itself listed on HitBTC, although its sole LCC/BTC pair has been largely ignored.
By Wednesday morning the valuation had fallen back down to $0.017916 – a 38% decrease over twenty-four hours, and a sign that this rumour was being bought in advance, and sold upon arrival.
Litecoin Cash Mining
While Bitcoin’s mining difficulty is adjusted every 2016 blocks, mining on the Litecoin Cash blockchain is adjusted after every block. From the whitepaper:
“With careful selection of the difficulty adjustment algorithm however, it is is possible to re-target the difficulty every single block, maintaining both mean blocktime stability and rapid network responsiveness to changes in total hash power.”
The mining algorithm is the same first used in Dash – Dark Gravity Wave – which allows the difficulty to be raised by 300%, or reduced by 60% every block. Litecoin Cash opts to throw its cards in with SHA256 and Proof-of-Work (PoW), like Bitcoin and Bitcoin Cash, but unlike the original Litecoin’s Scrypt algorithm.
Of particular note is the ‘slow start’ mechanism built into the mining structure, where mining rewards are scaled up over time to decrease the chances of a small handful of miners hoarding all the funds:
“…block rewards scale up linearly over the first two thousand blocks mined after the fork, giving miners plenty of time to bring their equipment online without compromising their potential rewards.”
Based on block times of 2.5 minutes, that equated to a gap of around three and a half days between commencement of mining, and rewards reaching their full potential.
Like LTC, both SegWit and Lightning Network features are present with LCC, and the whitepaper signals an intention to keep abreast of Litecoin’s own development, but to also branch out on its own. The developers state they are determined to:
“…use Litecoin Cash as a platform for innovation in the cryptocurrency arena, with a focus on everyday utility and security, and will not shy away from breaking away from upstream [Litecoin] codebases in order to demonstrate innovation.”
The Litecoin Cash team recently conducted a stunt which saw 160,000 LCC being literally airdropped. This screengrab is from a Youtube video which shows a balloon dropping the LCC from 32km high in near-space.
LCC can still be claimed by LTC holders who held funds on-chain on Feb 18th, 2018.
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.
Featured image courtesy of Shutterstock.