Litecoin is one of the original alt coins coming into existence in 2011 and created by former Google engineer Charlie Lee. However the founder Charlie Lee has recently announced he has sold all of his Litecoin which currently has a value of $283 per coin.
Do we need Litecoin?
For any cryptocurrency you should always be asking yourself, do we need this? If the answer is probably no then it is a good reason to be concerned. Litecoin looks to be marginally better than Bitcoin which is the purpose they set out in creating it but it seems the aspirations were not much higher in that Litecoin would always be the silver to the gold in Bitcoin.
When you compare Bitcoin vs Litecoin, Litecoin on the surface seems better but not by much and it is probably not enough that Litecoin would ever overtake Bitcoin which is simply too popular.
When the founder jumps ship
The founder claims they are selling their Litecoin so now they can talk freely about it and not feel like they are in a conflict of interest. That is certain people and companies can influence the price of any cryptocurrency based on what they say or do. Overall it's really hard to imagine these statements have any weight and it could be that Charlie Lee knows that Litecoin has hit it's peak and won't get any higher. Imagine Vitalik Buterin selling all of his Ethereum? If it did happen, people would be jumping off that ship and would call it sinking.
It's hard to imagine the founder dumping all their coins when Litecoin has hit 9300% in the past 12 months in returns so it is a massive payday no doubt. What could happen as a result is a surge in people dropping Litecoin and it could spiral out of control.
In 2 days Litecoin has gone from $374 to $275 which is a big drop. All the big coins are slumping in the past few days but nobody knows what will happen to Litecoin moving forward.
Is the ship sinking on Litecoin?
Litecoin is #5 on the marketcup for cryptocurrencies sitting just under $15 billion in market cap.
It's hard to imagine that Litecoin will keep up with the increases it has seen over the years but if there is one currency that is going to deflate, Litecoin isn't looking good right now. No matter how you spin it, the founder selling all their Litecoin when it has hit a near all time high is a bad site for the cryptocurrency.