Litecoin (LTC) – I have come across this question multiple times in the last few days. It is partly driven by the recent drop in the value of this crypto, as well as the announcement that Litecoin would be shutting down Litepay. This announcement to a large extent caused panic amongst many people who bought the hype. So what now? Is this the end of Litecoin? Absolutely not! This is just another correction in the long journey to the crypto revolution. Litecoin will be back bigger and better, and those who don’t panic stand to gain big!
To understand why, you just need to look the crypto ecosystem in its entirety. We have been in bearish territory for quite some time now. Every coin in the market has lost a good chunk of its value, and Litecoin is no exception. In fact, if you were to analyze the losses of all major cryptos since January, Litecoin is probably among the best performers so far. That’s despite the announcement that they would be shutting down Litepay. This is an indication that investors strongly believe in Litecoin, and will continue to back it no matter the hiccups it goes through in its journey. The panic sellers will definitely come back, once the market rebounds, and they will do what they do best, buying high, and selling low.
In addition, Litecoin (LTC) still has the brand name to allow it stay at the top of the crypto rankings. It is the in the top 5, has a very vocal and influential founder, and is way better than bitcoin (the number one crypto). In essence, all it will take for Litecoin to make a rebound is some new good news from its founder, and volumes will flow back. Even at current prices, Litecoin buy volumes are quite high, indicating that people believe it’s undervalued, and are looking to take advantage.
But the biggest asset to Litecoin’s future is that it has created trust with investors. In making the shutdown announcement, Litepay mentioned that they had denied funding requests made by the Litepay CEO, citing lack of transparency. In the ensuing conversations both on Twitter and Reddit, people were supporting the move, and appreciating it. With this announcement, the Litepay team has created an element of trust in the minds of investors, trust that will play a role in anchoring its value in this bearish environment.
It’s now clear that Litecoin (LTC) is neither dead nor dying. In fact, with its recent addition to the lightning networks for payments on Bitrefill, you can expect demand for Litecoin to come back. In the long-term, Litecoin will most likely emerge as one of the cryptos that can be used as currency. It is fast, secure, and has very low transaction costs. Those are not the attributes of a dead or a dying crypto. If anything, this is the best time for smart money to start accumulating on Litecoin. $1000 is still within the realm of the possible in 2018 for LTC.
This information should not be interpreted as an endorsement of cryptocurrencies or a recommendation to invest. Historic performance is no guarantee of future returns. As an investment class, cryptocurrencies are speculative investments and investing in cryptocurrencies involves significant risks – they are highly volatile, vulnerable to hacking and capital loss and sensitive to secondary activity. Before investing you should obtain advice and decide whether the potential return outweighs the risks.