Litecoin Takes a Dip spil Litepay Ceases Operations
Litecoin has taken a significant price kasstuk since promised payment processor LitePay has informed them that it has closed up shop.
What Went Wrong?
On Monday, March 26 the Litecoin Foundation, a non-profit dedicated to the advancement of Litecoin and an investor ter LitePay, announced on its webstek that LitePay CEO Kenneth Asare informed them that LitePay had ceased operations and wasgoed being sold.
Spil news that LitePay had folded went public Litecoin dropped down to $141 having lost almost ten procent of its value since Four:08 ET. Continuing on a downward trend of losing 28% this month and overheen 37% so far ter the year according to CoinMarketCap.
Litecoin experienced a mid-February bump when LitePay announced its merchant payment processing system for Litecoin would be up and running on Feb. 26.
Spil the go date came and went LitePay eventually sent an email to customers on March Five telling that it wasgoed “checking all perspective merchants” and suspending card registrations “due to the negative perception and drastic deeds card issuers have towards cryptocurrency companies.”
This statement wasgoed ter reaction to an announcement made by Mastercard and Visa that they were switching the way cryptocurrency transactions would be processed from purchases to metselspecie advances resulting te more fees for users.
LitePay wasgoed supposed to be an effortless way to make cryptocurrency transactions anywhere with only a duo of clicks of the mouse. It wasgoed also supposed to include LitePay Debit Cards. Cards that would enable users to transfer Litecoin units from any digital wallet to the card te order to pay for goods and services wherever major credit cards are accepted. It wasgoed also supposed to enable the exchange of LTC to any currency te the world via ATM.
Litepay has not sent out a customer update since the March Five email.
Charlie Lee Reacts
The Litecoin Foundation said it had refused a request from Asare for more funding after his “Ask Mij Anything” Reddit session raised serious questions about what the funding wasgoed for.
The creator of Litecoin Charlie Lee took to Twitter to express his frustration and to apologize for not scrupulously vetting Litepay before throwing the support of the Litecoin foundation behind the venture, he wrote.
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. I am sorry for having hyped up this company and vow to do better due diligence te the future. https://t.co/khIjeHnyZ1
The declines Litecoin experienced on Monday were felt by other coins spil well. Bitcoin went under $8,000 spil the all top ten Cryptocurrencies fell into the crimson according to CoinMarketCap.
The Litecoin Foundation looked to reassure it’s investors by posting “Litecoin wasgoed doing flawlessly fine before the promise of LitePay and will proceed to do so,” on its webpagina.