Litecoin (LTC) creator Charlie Lee has recently claimed through a tweetstorm that there’s been a “concerted effort to suppress litecoin” as he implied believes the cryptocurrency’s value is above its current market capitalization of $3.19 billion.
According to Lee, the effort to suppress LTC comes from funds and individuals who are shorting – betting against – the cryptocurrency, and by groups that see it as a threat. His goal in the tweetstorm was to demonstrate why the crypto has “tremendous value.”
1/ Recently, there has been a concerted effort to suppress Litecoin price by people/funds that are shorting LTC and by groups that see Litecoin as a threat. I will clear up this FUD and show why Litecoin has tremendous value.— Charlie Lee [LTC⚡] (@SatoshiLite) September 20, 2018
The cryptocurrency’s creator, which initially designed it to be the “silver to bitcoin’s gold” first addressed those who claim it no longer has an edge in the market, making it just another altcoin. He responded by claiming it has “one of the most secure networks” of all altcoins, with over $150 million of ASIC hardware protecting it.
He added miners have no incentive to attack the LTC network, as all their Scrypt mining ASIC hardware would lose its value. Moreover, he pointed to the cryptocurrency’s liquidity, as it’s traded on most crypto exchanges.
The entrepreneur then added LTC is supported by various payment processors which makes it easier for merchants to accept it, and that it processes over $200 million worth of transactions per day. It’s network, he touted, has been working flawlessly for 7 years.
Per his words the cryptocurrency isn’t made irrelevant by bitcoin’s Lightning Network (LN), as various LN clients and apps support it. With atomic and submarine swaps coming, along with decentralized exchanges, he added the “possibilities are endless.”
Litecoin started using SegWit and the LN before BTC. Some critics have pointed to it as the flagship cryptocurrency’s testnet, as it has effectively been used to test these technologies before they’re implemented on bitcoin’s $110 billion network.
8/ FUD: Litecoin as Bitcoin's testnet is not worth $3B.— Charlie Lee [LTC⚡] (@SatoshiLite) September 20, 2018
TRUTH: Even if Litecoin's only use case is a testnet, you can't put an absolute value on it. Need to look at it relative to Bitcoin. Litecoin's marketcap is only 3% of Bitcoin's marketcap. That is not very large at all!
The cryptocurrency is superior to BTC’s own testnet, he argued, as testnet coins have no actual value, so there’s no incentive for malicious actors to try to attack it. Adding to this, he pointed to litecoin’s development, claiming it recently fixed a critical Denial-of-Service (DoS) vulnerability that could have stopped transactions from being completed.
Weighing on cryptocurrency adoption, Lee has in the past stated that scalability solutions should be the top priorities. UK-registered multi-asset brokerage firm eToro has last month published a report that’s seemingly in line with Charlie Lee’s point of view, as it claimed LTC was trading at a “massive discount.”