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Litecoin down 10% after LitePay Ceasing
Editorial Team

The announcement of the CEO of payments processor LitePay regarding its ceasing of operation as it prepares to sell the company was followed by a 10 percent value drop of Litecoin.

According to CoinMarketCap, the value of Litecoin is trading around $144 at press time and it is down 28.5 percent for this month. Since the beginning of the year, the fifth-placed altcoin has dropped 37.5 percent.

In mid-February, reportedly, the price of Litecoin had increased 30 percent after LitePay, a payments processor for the currency, announced that it would be going live on February 26, 2018. Meanwhile, the creator of Litecoin, Charlie Lee wrote on Twitter about the venture.

However, after the recent developments, Litecoin Foundation, a non-profit organization for advancing the digital currency and an investor in LitePay, stated on its website that:

“…the Litecoin Foundation was contacted by Kenneth Asare, CEO of LitePay, informing us that has ceased all operations and is preparing to sell the company.”

The foundation went on to say that it had:

“…refused any further funding as [Asare] was unable to provide a satisfactory picture of where the money had been spent and refused to go into exact details about the company and show objective evidence to back up his statements.”

In light of the news, Lee tweeted:

“Like everyone else, we got too excited about something that was too good to be true and we optimistically overlooked many of the warning signs. I am sorry for having hyped up this company and vow to do better due diligence in the future.”

“The Litecoin Foundation continued saying that the cryptocurrency was doing fine before LitePay and would continue to do so after this, adding:

“The ecosystem is far bigger than one company and is continually growing with support from many others with market-ready products joining the space and fulfilling their promises to make it easier for the world to use Litecoin.”