On February 18, litecoin’s hard fork litecoin cash debuted in the digital currency market but met in bad taste by litecoin creator Charlie Lee. Quotes of him saying that any litecoin fork is a scam has been circling around many different articles and digital currency sites.
Days prior to litecoin cash’s debut, litecoin has been surging upwards up until days after. And this news even reached the more respectable investment media outfits like Forbes.com. Digital currency enthusiasts view this positively in terms of the market in general.
On February 3, founders of litecoin cash announced the upcoming debut of the new digital currency. Investors initially opened their arms to this news thinking that it was similar to the bitcoin-bitcoin cash hard fork story sending litecoin price to surge as high as $171 on Feb 4. But it did not withstand the slump all cryptocurrencies experienced on February 6 sending the price down to low of $110. Imagine how much your paper loss is if you hold at least 5 coins.
Towards litecoin cash’s debut, Litecoin went up as high as $234 and peaked at $248 2 days after the litecoin cash’s debut. But it was not spared when prices drop amid UK’s MP launching of query into cryptocurrency and distributed ledger technology, and a bitcoin crash in Japan over the last 2 days.
With the above events, we can conclude that the hard fork only gave a few days of spike.
Scam or Not
With Lee denouncing the recent hard fork of his creation is inciting debates all over the cryptocurrency community whether litecoin cash is scam or not. Some express that litecoin cash is a “legit” cryptocurrency and that a hard fork is just a normal evolution of the open source digital currency technology. It would seem that the litecoin cash’s founders promised significant improvements and removed some problems with litecoin.
However, according to an article in inverse.com, litecoin cash did not solve any problem and that litecoin is not keen on developing any solution. Founders of litecoin cash were trying to make their coin appear to be the bitcoin cash for litecoin.
But there is a stark difference as bitcoin cash was a product of lengthy discussions amongst different stakeholders of bitcoin and its technology. One of the main points was the delay experienced in bitcoin’s transaction processing which is not an issue at the moment for litecoin.
Litecoin cash is just one of the new kids on the block of digital currency. I do believe they are legit and their founders want to make money on Initial Coin Offering (ICO). But for a litecoin holder, those guys are luring you to move to litecoin cash with an offer of getting 10 free coins for every litecoin you hold. I suggest that you stick to your trading plan and collect the free coins offered by the hard fork.