Daily Litecoin News Update
On Thursday morning, Litecoin prices are managing to keep their head above water although a spate of distressing news is playing havoc with investor sentiments.
Fearmongers are spreading fear, uncertainty, and doubt (FUD) that after “LitePay” failed to fully deliver on its promises, Charlie Lee’s latest investment disclosure may have hammered the final nail in the coffin.
But don’t sweat it. You’re in good hands. Let me explain what’s going on.
In case you didn’t follow, Litecoin founder Charlie Lee disclosed yesterday that he has just invested in a rival cryptocurrency. This supposed Litecoin competitor is Nano, formerly known as RaiBlocks.
If you follow Profit Confidential, we reported yesterday that Charlie Lee looked into the Nano cryptocurrency and was left impressed with its technology. A day later, he has disclosed his Nano ownership to his Twitter family.
Skeptics are now ranting that the Litecoin founder has, in fact, abandoned his own ship by selling all his stake in Litecoin and instead taking up ownership in a rival cryptocurrency.
But here’s the real fact; Lee’s ownership in the two cryptos, or lack thereof, is for two completely different reasons.
Lee’s stake in Litecoin, even without owning any Litecoin, is far greater than any investor out there. Litecoin is his brainchild—one he’s raising to be the next granddaddy of cryptos like Bitcoin.
His reason for selling LTC was obvious, that is, to avoid conflicting interests. By holding and promoting LTC at the same time, he would have come across as a shill pumping his own coin. So we welcomed his move.
As for his reason to buy Nano, it’s far simpler than the skeptics want to believe. Like any average investor, he found the technology to be promising and invested in it. It’s as simple as that. His personal investment in no way discredits Litecoin.
As he points out, there is enough room for more than one cryptocoin to co-exist. Nano might be just one of the coins Lee finds to be as good as Litecoin.
Investing in the two is not mutually exclusive. For LTC investors, Nano may be an opportunity to diversify their crypto portfolios.
Also, while it may be a great technology, Nano is still a very young crypto compared to Litecoin. By the time Nano makes it to the mainstream, Litecoin may have already grabbed most of the market share.
Finally, if it’s of any consolation to investors, Litecoin remains the better performing crypto this year, despite the recent crypto market crash.
Chart courtesy of TradingView.com
To answer the question we posed in our headline, no, Charlie Lee is remaining faithful to his creation. So, we’re remaining true to our Litecoin price prediction. We continue to foresee Litecoin prices hitting $400.00 this year.