Litecoin (LTC) Slides as LitePay Collapses
Litecoin has been one of the better performing cryptocurrencies this year, due in part to the announcement of LitePay, a payment platform that was seen as supporting Litecoin’s journey to more mainstream adoption.
LitePay offered a way to “accept Litecoin, store and spend Litecoin securely, or turn Litecoin into dollars with the LitePay Card”. However, after repeated delays in the platform’s roll-out, the company has suddenly shut up shop.
The Litecoin Foundation has revealed that Litepay CEO Kenneth Asare has contacted them saying that he has “ceased all operations and is preparing to sell the company”. Asare’s “less than transparent nature” had already caused concern within the Litecoin community and foundation, with his Reddit AMA provoking particular consternation.
During that AMA (“Ask Me Anything”) Asare was vague and uncommunicative in response to the community’s repeated requests for clarity over the company’s size and capabilities. One commenter summed up the group’s feeling: “I want LitePay to succeed but but poor communication on the launch date and lack of documentation says otherwise.”
The Foundation say that Asare had asked them “for more funds to continue operations” but without a “a satisfactory picture of where the [previously donated] money had been spent” they “refused any further funding”. This appears to have triggered Asare’s decision to sell the company.
In their statement the Litecoin Foundation apologises for “for not doing enough due diligence that could have uncovered some of these issues earlier” and promise that they are working to improve their oversight procedures to “ensure that this does not happen again”.
Litecoin founder Charlie Lee also took to Twitter to apologise. He said that the Litecoin team had “got too excited about something that was too good to be true” and also promised “to do better due diligence in the future”. The Litecoin price has slumped 10% on the news.
Image From Shutterstock