Litecoin Founder Charlie Lee on Next Month’s Halving

Michael LaVere
  • Litecoin founder Charlie Lee says next month's halving will be a "shock" for ltc miners.
  • Price increase for litecoin is being driven by investor anticipation over the reward drop. 

Litecoin founder Charlie Lee predicts that next month’s halving will be a shock for LTC miners, leading some of them to shutter their enterprise for good. 

Halving Will 'Shock' Litecoin Miners

In an interview with Australian crypto outlet Mickey published on July 10, Lee gave his opinion on litecon’s forthcoming halving. Estimated for August 5, the halving will cut litecoin’s mining reward from 25 to 12.5 LTC per block, greatly decreasing the profitability generated through mining coins. 

According to Lee, the halving has historically been a “shock to the system” for Litecoin and its miners, as they sort out the new landscape of block rewards. Some miners will be forced to close their enterprise, leading to a short-term disruption in the LTC network. 

Lee explained,  

“When the mining rewards get cut in half, some miners will not be profitable and they will shut off their machine. If a big percentage does that, then blocks will slow down for some time. For litecoin it’s three and a half days before the next change, so possibly like seven days of slower blocks, and then after that, the difficulty will readjust and everything will be fine.”

Litecoin has been one of the best performing cryptoassets in 2019, gaining more than 300% in value since the start of the year. Analysts attribute the price trend to anticipation for the halving, when the supply of coins is suddenly decreased. Miners are forced to sell their litecoin at a higher price to recoup electricity and operating costs, thereby driving the market value higher. 

Litecoin ltc price halving 2019LTC/USD price has steadily risen throughout 2019 | Source: CryptoCompare

LTC Price a Self-Fulfilling Prophecy

Lee commented on the price psychology of a halving event, particularly that investors are being driven by a “self-fulfilling prophecy” of a price increase.

Litecoin’s founder believes the reward drop should already be represented in the valuation because investors know about the event well in advance. Current market prices are being driven by traders expecting others to continue buying litecoin, thereby driving the price higher, 

Lee told Mickey, 

“In terms of the price, the halvening should be priced in because everyone knows about it since the beginning. But the thing is people kind of expect the price to go up. So a lot of people are buying in because they expect the price to go up and that’s kind of a self-fulfilling prophecy. So, because they’re buying in, the price does actually go up.”


Litecoin’s last halving event occurred in August 2015. The coin jumped more than 450% in the months leading up to the reward drop before peaking in early July 2015. However, litecoin fell in the subsequent weeks and was trading at 50% of its earlier valuation by the start of the halving. 

Ebang Plans Offshore Exchange as NASDAQ Share Prices Falter

Michael LaVere
  • Chinese bitcoin mining rig manufacturer Ebang has announced plans to launch an offshore exchange.
  • The firm's stock has fallen 11% since being listed on NASDAQ last Friday.

Chinese crypto mining company Ebang has announced plans to launch an offshore exchange amidst a drop in share prices. 

Ebang International Holdings, an ASIC mining rig manufacturer, has witnessed a decline in share prices of more than 11 percent since being listed on NASDAQ June 26. The company represented the second mining firm to have a U.S. initial public offering (IPO), with shares falling under the ticker EBON. 

Ebang’s stock launched last Friday with an initial 19.3 million shares offered, leading to the firm raising $101 million. Since opening, share prices briefly rose from $4.85 to around $5, before subsequently falling to $4.29. 

According to a report by Bloomberg on June 29, Ebang intends to launch an offshore cryptocurrency exchange before the end of 2020. The Hangzhou-based manufacturer expects total revenue to grow about 40% following the expansion, with Chief Financial Officer Chen Lei saying revenue could potentially double to $200 million. 

Chen called the stock’s launch a win for Ebang’s brand, despite being listed at a time of escalating tension between US and Chinese trade relations. Chen told Bloomberg the company seeks to draw more customers from overseas markets, including the US, as currently 90 percent of the firm’s sales come from China. 

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