Bitcoin, Cryptocurrency And Blockchain News

LitePay Folds; Litecoin Foundation Forced to Admit Mistake and Apologize


Litecoin suffered a dip of 10% in price as news broke that LitePay had ceased its operations today. This caused Litecoin founder Charlie Lee to tweet his apologies to the community, pledging to do better due diligence moving forward.


LitePay was supposed to be the new PayPal, offering storage, transactions and conversions between Litecoin and USD. But it never really got off the ground following the announcement that it would start offering services on February 26th; which didn’t materialize. Indeed, as the delays and the excuses mounted up, users took to Reddit during an Ask Me Anything session to question LitePay CEO, Kenneth Asare. He was unable to provide answers for most of the questions he was asked, and another Reddit user even discovered that their original privacy policy was cut and pasted from Coinbase (although that was later changed).

It would now appear that if LitePay wasn’t a scam, it was certainly an unprepared and ill-thought out addition to the LTC community, and Charlie Lee will need to ensure that his promise of better due diligence is met in the near future, to regain user trust in the platform as a whole. There will be hopes that currency itself is not affected for too long. Although, at the time of writing, the drop during the day had increased from 10% to 14%. There will certainly be some concerned investors out there right now.

Was LitePay a scam? Will Litecoin recover? Let us know your thoughts in the comments section.