Litecoin (LTC) Price Rebounds as Founder Charlie Lee Kills Bitconnect
Sinking back toward a low $80 mark over the course of the past 48-hours, it was starting to look like an expected Litecoin price correction was turning into an all-out Litecoin (LTC) high-speed rail disaster. Then, suddenly, the Litecoin value rebounded, soaring once again almost to the $100 mark.
There is just one question. Was this a real Litecoin (LTC) rebound? Or has Charlie Lee’s decision to call out Bitcoin Ponzi scheme Bitconnect, had something to do with Litecoin’s rapid return to glory?
How Charlie Lee Just Killed Bitconnect
In recent months distrust has been building among a growing number of cryptocurrency traders, specifically regarding the reputability (or not) of the popular ‘Bitconnect’ automated Bitcoin trading platform. Simply put, Bitconnect promises anyone who deposits Bitcoin in exchange for (or who buys) Bitconnect Coin, a minimum 1% return on their investment. What is more, that 1% isn’t one time only. That’s 1% for every day an investor continues to invest in Bitconnect’s mining and automated trading system.
There is, of course, just one problem. Namely, If daily guaranteed returns like 1% were possible, investing $1,000 in Bitconnect would (or at least should) land somebody $50 million in as little as three years.
Until yesterday, however, the only digital currency insider who had dared take a stance against Bitconnect, was ETH founder Vitalik Buterin. Much to the digital currency world’s surprise then, Litecoin founder Charlie decided to get in on the action on November the 29th, saying: “If it looks like a duck, walks like a duck, and quacks like a duck, it’s probably a Ponzi scheme.”
Why Charlie Lee Calling Out Bitconnect is Fantastic News for Litecoin
Needless to say, with Charlie Lee, Vitalik Buterin, and even Billionaire Michael Novogratz now going after Bitconnect, the platform will likely see far fewer people willing to invest in future.
As then, for why Charlie Lee’s personal comments will likely buoy Litecoin in the long-term, the reason is simple. As we head on into 2018, being able to put a face to the name of digital assets like Litecoin is going to start becoming hugely important.
In January 2017, Charlie Lee publicly announced his personal vision
for Litecoin. Existing Litecoin investors and people looking to buy Litecoin for the first time have subsequently been able to familiarize themselves with Charlie Lee’s vision and decide if they want to invest in it or not. Bitcoin, on the other hand, simply doesn’t have that kind of set direction, or human approach-ability.
Having a Human Persona is Going to Be Vital for Altcoins in the Long-Term
While the very idea might fly in the face of decentralization, big league investors simply don’t like not knowing who is calling the shots when it comes to digital assets.
From an investor perspective, the current Bitcoin value might look tempting. In reality, however, 2017 was a strategic and long-term planning fiasco for Bitcoin. Bitcoin holders were given less than a month to prepare for two last-minute forks of the digital currency. Then later in the year, just as investors were preparing for segwit2x, segwit2x didn’t even happen.
None of the above inspires investor confidence. What does inspire confidence, however, is a digital currency with a plan and man at the helm like Charlie Lee. Much more importantly, this has already been reflected in the recent slide of the Litecoin value and the current Bitcoin value. After hitting $100, after all, Litecoin didn’t slide as far as Bitcoin. What is more, despite having followed Bitcoin’s growth, it’s actually Bitcoin’s recovery which is now lagging behind that of Litecoin and Ethereum. .
Ex-Google engineer, Charlie Lee is the creator of Litecoin and MD of the Litecoin Foundation. Previously Director of Engineering at Coinbase, Lee now focuses full-time on Litecoin. To enhance fungibility and privacy of LTC, integration of MimbleWimble has begun, however Lee has recently announced a crowdfunding launch to fund the development.
Vitaly Dmitriyevich "Vitalik" Buterin is the co-founder of Ethereum, the world's most popular smart contract platform that enables developers to build decentralized applications (at the time of wirting this, ETH has a market cap pf $2B). Prior to his development of Ethereum, Buterin was the co-founder of Bitcoin Magazine.