Charlie Lee, the former director of engineering at Coinbase, is selling almost all of his holdings in Litecoin (LTC), the cryptocurrency that he founded in 2011.
Should we be worried? How does this effect Litecoin in the future?
“For the first time in 6+ years, I no longer own a single LTC that’s not stored in a physical Litecoin. (I do have a few of those as collectibles.)”
According to his Reddit post, the amount Lee sold was a small percentage of GDAX’s daily volume, and it did not crash the market.
Why sell?
In line with the statement, Lee decided to sell all of his Litecoin due to the potential for conflict of interest, given the impact his private statements may have on the coin’s price.
He explained that by selling all his LTC, he can completely separate his personal opinions and actions from the overall performance of the cryptocurrency, pointing out:
“…whenever I tweet about Litecoin price or even just good or bads news, I get accused of doing it for personal benefit. Some people even think I short LTC! So in a sense, it is a conflict of interest for me to hold LTC and tweet about it because I have so much influence.”
Lee’s future
“Don’t worry. I’m not quitting Litecoin. I will still spend all my time working on Litecoin. When Litecoin succeeds, I will still be rewarded in lots of different ways, just not directly via ownership of coins. I now believe this is the best way for me to continue to oversee Litecoin’s growth.”
Litecoin’s current performance
Litecoin has risen to all-time high values in latest weeks. At press time, LTC was buying and selling at $312, down from an all-time high of $371 the previous day, Dec. 19.
Inside the past month, LTC price has visible an almost 300 percent growth, up from $71.41 on Nov. 20.
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