In a recent announcement published by the Litecoin Foundation, it became known that “LitePay”, which was a merchant solution for (LTC) and was meant to function in a fashion similar to BitPay, would be going for sale.
But what happened?
Not enough due diligence from Litecoin.
According to Litecoins Director of Operations, Keith Yong, the organization did not conduct enough proper due diligence regarding LitePay. In addition, Young reported that the foundation is now devoting more attention towards tightening their due diligence process in terms of future partnerships.
It also seems that the Litecoin Foundation refused additional funding for LitePay, due to a lack of transparency in terms of how previous funs have been spent. Initial concern regarding LitePay emerged from a Reddit Ask Me Anything (AMA), involving the CEO of LitePay, Kenneth Asare. Apparently, Asare had difficulties answering various questions, which caused LTC supporters to become heavily disgruntled.
After this news was released to the public and spread amongst feeds, LTC prices saw a marketwide drop of close to 20 dollars.
Should Litecoin holders be worried about this news?
But, should LTC users and holders be concerned about the long-term effects this news might have on the cryptocurrencies price?
I would certainly say that no, they should not be worried. While the news might seem uncomfortable at first, it should certainly have no long-lasting and heavy impact on the LTC Foundations success as an organization. This was also highlighted in the announcement that was made by LTC.
Litecoin was doing perfectly fine before the promise of and will continue to do so. The ecosystem is far bigger than one company and is continually growing with support from many others with market-ready products joining the space and fulfilling their promises to make it easier for the world to use Litecoin.
Keith Yong, Director of Operations, Litecoin.
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