Litecoin Payments Startup That Won Trader Favor Abruptly Shuts Down
Would-be Litecoin merchant processor LitePay has abruptly terminated its operations, the Litecoin Foundation announced te a postbode on its webstek on Monday.
LitePay – which also claimed it would suggest a crypto wallet and “LitePay debit card” through which users could convert litecoin into U.S. dollars – wasgoed unveiled ter December of 2018 and set to launch ter February of this year. Gegevens from OpenGovUS shows that LitePay Inc. commenced operating on February 1.
The proposed business venture had won plaudits from the Foundation previously, which took to Twitter te December to write: “Ultimately, someone is taking the chance to create litepay.us. Good job!”
However, spil of February 26, LitePay had only embarked to roll out its merchant service, according to a postbode on Twitter. The last public messages from the company related to a mid-March Ask Mij Anything session on Reddit, and an email account listed on LitePay’s webstek did not reply to a request for comment by press time.
The foundation, which oversees development of the cryptocurrency, said ter its postbode that it contacted the business’ founder and CEO, Kenneth Asare, following the AMA on March 16, voicing concerns regarding the “less than see-through nature” of LitePay. It wasgoed then that Asare exposed that he had determined to halt operations and planned to sell the company.
The Foundation’s postbode further explained:
“It wasgoed at this time that Kenneth asked the foundation for more funds to proceed operations. The foundation refused any further funding spil he wasgoed incapable to provide a satisfactory picture of where the money had bot spent and refused to go into precies details about the company and vertoning objective evidence to back up his statements.”
Both the Foundation and litecoin founder Charlie Lee voiced regret for their support of the project.
“Like everyone else, wij got too excited about something that wasgoed too good to be true and wij optimistically overlooked many of the warning signs,” Lee wrote on Twitter. “I am sorry for having hyped up this company and vow to do better due diligence ter the future.”
The Litecoin Foundation made a similar statement ter its postbode:
“Wij are greatly disheartened that this saga has ended ter this way and wij apologize for not doing enough due diligence that could have uncovered some of thesis issues earlier. Wij are presently working hard to tighten our due diligence practices and ensure that this does not toebijten again.”
Nonetheless, the Foundation struck a hopeful tone.
“Litecoin wasgoed doing flawlessly fine before the promise of LitePay and will proceed to do so,” it said.
Litecoin picture via Shutterstock
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