фото показано с : blokt.com

It has been some time since one of Bitcoin’s most popular forks, Litecoin, made an impact in the world of blockchain and cryptocurrencies. In a quickly developing market, staying quiet for too long could mean extinction. Hedge fund Multicoin Capital believes that Litecoin is not worth its value anymore. The fund is shorting LTC, the seventh largest cryptocurrency in the world with about $3 billion in market capitalization.

Litecoin enthusiasts called LTC the “silver to Bitcoin’s gold.” A hard fork of the original cryptocurrency, LTC was the medium of exchange, while Bitcoin was the store of value. However, in the crypto market, the difference between silver and gold is becoming very evident. Bitcoin still rules the market with over $108 billion in market capitalization. Even though it has fallen from its peak of $20,000 to $6,308.66, Bitcoin remains the world’s premier crypto coin.

But Litecoin hasn’t been equally fortunate. During December 2017’s crypto rush, it reached an all-time high of $358 but has since slipped to around $50. Multicoin Capital claims that even at this relatively humble price point, Litecoin is “significantly overvalued.”

In Multicoin Capital’s new report, managing partner Tushar Jain argued against the value of Litecoin, suggesting that the coin faces a host of “negative catalysts,” and there is no bull case to turn the coin’s fate. The report downplays the coin’s 2017 bull run, claiming that it was predominantly a result of the immaturity in the crypto market as LTC was the “least expensive per-unit asset on Coinbase” at the time. Coinbase was a retail-heavy space where several first-time investors bought cryptocurrencies. Now, LTC doesn’t bear the distinction of being low priced like Ethereum Classic, a more popular coin that has entered the Coinbase platform.

The report further claims that Litecoin Foundation doesn’t have a sound financial situation and holds approximately $322,000 in assets, 82 percent of which is in LTC. The Litecoin project itself doesn’t seem to have a unique development roadmap, and even the project’s GitHub remains clueless. Litecoin Founder Charlie Lee sold his entire LTC stake, which was termed a red flag by Jain.

He further said:

“Despite his intentions, misalignment of incentives now exists that decreases his motivation to continue development and add value to the protocol. To better achieve this goal, we would have liked to see him time-lock his holdings or use them to fund further LTC development.”

The coin, Jain argued, will face selling pressure in the near future and will likely be unable to bear it. He also stated:

“In truth, Litecoin is a relic of the pre-smart contract platform crypto ecosystem. Perception resulting from these outdated narratives has led to a large divergence between current price and fundamental value.”

Multicoin Capital Shorts Litecoin Claiming It’s “Significantly Overvalued” was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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