Connect with us

Litecoin News

Charlie Lee Stirs DASH Instamine Controversy; Attracts Scrutiny to Litecoin’s Own Misgivings

Published

on

Charlie Lee Stirs DASH Instamine Controversy
In a tweet posted July 23, Litecoin creator Charlie Lee slammed Dash for its rocky main-net launch which saw a significant chunk of the total coin supply instamined within 24 hours.

Charlie Lee Stirs DASH Instamine Controversy; Attracts Scrutiny to Litecoin’s Own Misgivings

In a tweet posted July 23, Litecoin creator Charlie Lee slammed Dash for its rocky main-net launch which saw a significant chunk of the total coin supply instamined within 24 hours.

The term ‘instamine’ is popularly used to describe periods of time when cryptocurrency blocks are mined faster than the usual rate, disproportionately benefiting a small group of miners.

Lee was later forced to delete his Tweet after facing backlash involving Litecoin’s own instamine controversy. In a subsequent comment on Reddit, he clarified that Litecoin’s instamine took place due to unexpectedly high mining activity on launch day, stating,

“At launch, thousands of people jumped in and fast mined a lot of coins, but that amount is less than 1% of the total supply today. And because it was launched fairly, everyone had an equal chance to mine those coins.”

Charlie Lee

Lee Criticizes Dash, Twitter Fires Back

In his post, Lee blamed the creator of Dash, Evan Duffield, for unfairly handling the cryptocurrency’s launch and incorrectly estimating the initial difficulty required. Shortly after sharing this sentiment, however, Lee was bombarded with responses that pointed out Litecoin’s own instamine fiasco.

One such response claimed that 500,000 LTC coins were mined on the first day of the cryptocurrency’s launch. The user blamed Lee for the bug in his code, which Dash later inherited during its own mainnet launch. Following this criticism, Lee deleted his tweet.

In his comment on Reddit, Lee said that he kept the initial difficulty low to protect the network against 51 percent attacks and that the instamine only took place because of the high hash rate. He asserted that most cryptocurrencies, including Bitcoin, were designed that way. Lee added that if Bitcoin had thousands of miners at launch instead of a handful, it would have experienced a similar phenomenon too.

Charlie Lee announced the Litecoin project in October of 2011 as a robust alternative to Bitcoin. He described Litecoin as the equivalent of ‘silver’ if Bitcoin (BTC) was considered the gold standard. In his forum post, Lee detailed Litecoin’s many strengths, including faster transactions, open-source friendliness, and community inclusion by having everyone vote on a co-ordinated launch time.

litecoin (LTC)

Problems Originating from Lee’s Code

In the first 24 hours of Dash’s launch, approximately 1.9 million DASH coins were issued. This represented between 10 to 15 percent of the total DASH supply. Duffield eventually acknowledged the instamine later on.

Duffield said that Dash’s launch could have benefited from a couple of months worth of scrutiny from a team of developers and testers. He added that if he had a chance to start over, he would have set the initial distribution to 10 percent, where anyone looking to sell would have to submit a 30-day notice.

The Dash and Litecoin instamine took place because of incorrect adjustment of difficulty rates, both projects failing to account for initial hash rates. Since virtually no one talked about it during Litecoin’s launch, Duffield likely did not notice the bug prior to Dash’s launch.

Do you believe that Lee and Duffield should have been more cautious considering that both cryptocurrencies now have valuations totaling billions of dollars? Let us know your thoughts in the comments below.

Litecoin News

Litecoin Celebrates Eighth Birthday With Total Transactions Reaching $500 Billion Mark

Published

on

Litecoin Celebrates Eighth Birthday With Total Transactions Reaching $500 Billion Mark

According to a post from the Litecoin Foundation, it was in October 2011 when the first block was mined on the Litecoin network with the message:

“@NY Times 05/Oct/2011 Steve Jobs, Apple’s Visionary, Dies at 56”

Subsequently, another couple of blocks were mined for genesis block validation and ensuring the proper functioning of the network. After the confirmation, Charlie Lee, the creator of Litecoin, asked users through the Bitcointalk forum as to when it should be launched for ensuring input from the community.

The time decided was at 03:00 GMT on Thursday, October 13th. Even though there wasn’t much interest from users initially, with time more and more people went on to adopt the cryptocurrency and it saw growth alongside Bitcoin itself making headlines – partly due to the use of the coin in the darknet markets such as Silk Road.

According to CryptoCompare data, Litecoin now maintains a $3.59 billion market cap and has become a top traded cryptocurrency in terms of the trading volume. According to Charlie Lee, $500 billion worth of transactions has been made using the Litecoin network until now.

But Litecoin is not without its detractors. Those who consider it a Bitcoin copy have heavily criticized it citing that it would only distract users from Bitcoin.

There are others who consider Litecoin a testnet for BTC. It acted in that capacity during the implementation of Segregated Witness, as it was adopted by the Litecoin network before Bitcoin, and it still has higher usage on the network. As per the figures from last month, the use of SegWit on LTC has grown over 75%. The ATH for SegWit usage on the BTC network has just reached close to 60%.

Litecoin has seen some of the wildest price fluctuations in the past as well. During the last few years, there have been severe fluctuations with LTC hitting a new ATH of almost $400 in December 2017. It started at only $4 that year.

After that, in December the following year, the price crashed to $22, and it has seen recovery ever since. At the moment, the Litecoin trading price is $57.

According to recent reports, the Litecoin Foundation is currently facing depleted reserves, but Lee has said himself that there’s enough to last for a couple of years.

Continue Reading

Litecoin News

Litecoin Foundation to Hold Undisclosed Treasury Sum with Crypto Lender

Published

on

Litecoin Foundation to Hold Undisclosed Treasury Sum with Crypto Lender

The Litecoin Foundation is putting its capital to work, lending at interest through another cryptocurrency program.

The Foundation has tapped the Celsius Network, a blockchain-based crypto lending program, to become its preferred crypto wallet, Celsius Network CEO Alex Mashinsky stated.

As part of the deal, the Foundation will allocate an undisclosed portion of its treasury to the Network. LTC holders can receive up to 10.53% annually back on their crypto holdings and dollar loans as low as 4.95 percent as well.

Mashinsky said the endorsement by the Foundation validates the platform, which claims to give back up to 80 percent of its revenue to depositors.

“Litecoin being the first foundation to work with us and endorse us is a real milestone. It’s a huge event,” Mashinsky said. “That’s the first time I can say that the general community is recognizing Celsius for the utility it provides.”

Raising $50 million in a 2018 initial coin offering, Celsius has completed over $2 billion in loans in 2019, held $350 million annually in customer deposits, and issued over $3.5 million in interest.

Crypto custodian BitGo stated they held some $1 billion in Celsius-based crypto deposits this past year, almost double the amount locked away in decentralized finance protocols according to DeFi Pulse.

The primary non-profit tasked to maintain the cryptocurrencies codebase, the Foundation has been actively seeking partnerships this past year. Notable additions have included the Miami Dolphins, and now, the Celsius Network.

The Foundation’s financials came under scrutiny last quarter following disclosures concerning employee pay during Q1. Litecoin creator and Foundation managing director Charlie Lee stated at the time he would continue to fund the Foundation until financially stable.

Lee stated the interest-bearing deposits were the onus for signing up with Celsius, particularly for LTC holders.

“We’ve chosen Celsius as the LF’s preferred interest bearing wallet as we are always interested in helping LTC holders take advantage of new use cases for their holdings. What better way to show our confidence in the product than by allocating a portion of the LF’s treasury.”

Lee stated the Foundation has no plans for taking out loans on collateral, a product Celsius offers.

“At this time, we have no immediate lending or borrowing plans,” Lee said at the time. “As our relationship with Celsius evolves we are certainly open to exploring new opportunities.”

 

Continue Reading

Litecoin News

Litecoin Sinks 2%, But Analysts are Still Bullish

Published

on

Litecoin Sinks 2%, But Analysts are Still Bullish

Ever since its highly anticipated halving event earlier this past summer, Litecoin has been facing a significant amount of downward pressure that has led it to retrace over 50% from its 2019 highs.

This lackluster price action has shown few signs of slowing down anytime soon, but one analyst is still noting that there are multiple reasons to be bullish on LTC presently.

Litecoin Drops Below $70 as Markets Turn Bearish

At the time of writing, Litecoin is trading down over 2% at its current price of $69.5, which marks a notable retrace from its weekly highs of $73.

In 2019, LTC peaked in late-June when the entire crypto market was nearing the peak of its parabolic run, which sent the crypto to highs of over $140. In the time since, however, Litecoin has retraced over 50% from these highs, signaling that its highly anticipated halving had little impact on its price.

Mati Greenspan, the senior market analyst at eToro, explained in a recent email that he is still bullish on LTC despite its recent lackluster price performance, explaining that he is drawn to the crypto due to its high level of usage and massive community, which he believes will help bolster its long-term price action.

“If we’re thinking long term and past this specific event, I’m staying in. What draws me here is the level of usage and the community around this coin. The number of transactions on the blockchain remains extremely consistent at around 25,000 per day. This has not been affected by the halving whatsoever,” Greenspan explained.

Furthermore, Greenspan also explained that the widespread and decentralized nature of nodes that are running Litecoin also bolsters its long-term bullish case.

“As well, the number of nodes is spread well across the globe. Right now there are more than 1,700 computers running LTC nodes, which is actually quite comparable to the ~10,000 bitcoin full nodes operating at the moment,” he added.

It is important to note that there has been growing controversy surrounding Litecoin in recent times regarding its development, but the claims that were widely perpetuated on Twitter were largely unfounded and have since been dispelled.

Continue Reading

TRENDING

Copyright © 2015 Crypto Global News Team.