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

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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 Foundation Funds are Drying Up Fast

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Litecoin Foundation Funds are Drying Up Fast
#CharlieLee, the creator of the digital currency, believes that there is no need to worry, as he believes the depleting reserves are still far from hitting a crisis point.

Litecoin Foundation Funds are Drying Up Fast

Is the #Litecoin Foundation undergoing a #financialcrisis? Well, that might very well be the case as the non-profit tasked with overseeing the fifth-largest #cryptocurrency in the world was reportedly left with only $96k in its reserves by the end of Q1 2019.

However, #CharlieLee, the creator of the digital currency, believes that there is no need to worry, as he believes the depleting reserves are still far from hitting a crisis point.

Charlie Lee Litecoin

Litecoin Funds Drying Up Across All Avenues

According to a new set of data, the Litecoin Foundation raised approximately $575K in donations since June 2017. Strikingly, a whopping 81% of that amount (~$868K) came from Lee alone. Roughly 8% came from mining companies.

The sales of merchandise only totaled $300 during the first quarter of 2019, which one could see as an ominous sign that the community is gradually losing interest in Litecoin. The data further showed that the average monthly donation during the first three months of 2019 was just $1,000.

With the inflow of funds drying up, the Litecoin Foundation has been by and large relying on its cryptocurrency reserves to sustain operational expenses. But, as it turns out, even the reserves are depleting fast, with only $96,400 reported to be left by the end of the quarter ending March 31, 2019.

Charlie Lee, however, remains convinced that the Litecoin Foundation is “doing fine” despite all financial setbacks. He took to Twitter earlier on Saturday to respond to ongoing speculations that the Foundation was left with the proverbial peanut to sustain itself.

Saying that the project is lean enough to manage on a tight budget, Lee also promised worried stakeholders that they were “starting to make money” once again.

Time to Shake Things Up for Litecoin’s Sake

Once widely acclaimed as ‘the Silver to Bitcoin’s Gold,’ Litecoin currently appears to be facing a range of issues not just financially, but in terms of core development.

In fact, there was (kind of) a panic-like situation late last week after reports emerged that the Litecoin Foundation is struggling to rope-in competent developers to take charge of protocol development.

Apparently, Lee himself acknowledged that “no one is interested in working on Litecoin protocol development work” during a private conversation with other Foundation members. The conversation took place over at the Telegram channel “LTChasnodev” and was later leaked online.

Lee eventually had to defuse the situation by assuring the community that work was in progress behind the scenes and he would “get the ball rolling” soon.

No doubt, Litecoin is still up there among the top-5 cryptocurrencies by market cap, but there is a growing sense among many stakeholders that the Litecoin Foundation should be more proactive in its efforts to resolve the issues hindering the ecosystem’s growth.

Do you agree that the time is ripe for a shakeup in the Litecoin Foundation? Perhaps you would prefer faster development and more transparency in the way things are being handled at the top? Let us know your thoughts in the comments below.

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Litecoin News

Litecoin’s Charlie Lee Reignites Instamine Controversy Eight Years After LTC’s Launch

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Litecoin’s Charlie Lee Reignites Instamine Controversy Eight Years After LTC's Launch
Litecoin founder Charlie Lee took to Twitter to provide a counterargument and explanation for LTC’s instamine, a cryptocurrency that was launched eight years ago. 

Litecoin’s Charlie Lee Reignites Instamine Controversy Eight Years After LTC’s Launch

Litecoin founder Charlie Lee took to Twitter to provide a counterargument and explanation for LTC’s instamine, a cryptocurrency that was launched eight years ago.

Instamine Woes

As litecoin approaches its next halving, during which time the block reward will be reduced by 50%, the near-decade old controversy surrounding the currency’s genesis has been resurfaced.

Detractors of LTC have been critical of Lee and his handling of the ‘instamine phase’ in the early days of the coin’s launch.

Instamining refers to a process in cryptocurrency where coins are initially distributed in an uneven or unfair manner. Typically, it involves the release of coins in a disproportionate amount to a handful of miners and investors. In the case of Litecoin, it has been determined that the currency underwent a similar phase in the days after launch.

According to Lee,

“[It’s] well known that Litecoin was fast mined in the first few days as the amount of people and hashrate was more than I thought there would be.”

Deleted Tweets

Despite the instamine occurring eight years ago, Lee renewed the controversy after publishing, then deleting a tweet that seemed to take aim at rival cryptocurrency Dash.

In the tweet that has been since been scrubbed, Lee attempted to explain the instamine phase, in addition to pointing out how Dash may have committed a more egregious offense.

“It’s hard to estimate how much a hashrate jumped on it initially. But it was still fair with Litecoin as everyone had a fair chance to mine. What was unfair with Dash was that it was launched to friends only for the first few days. And then total supply reduced after the fact.

 

charlie lee litecoin deleted tweetCharlie Lee’s deleted tweet

Some community members are speculating that Lee withdrew the tweet after drawing attention to litecoin’s own contentious mining behavior. As outlined in a Reddit post addressing the issue, Litecoin clearly underwent an accelerated mining phase that produced 500,000 LTC in 24 hours.

litecoin instamine charlie leeGraph showing instamine phase in the early days of Litecoin.

Charlie Lee Responds

Lee defended his actions in a separate Reddit post, saying,

“If I knew what the hashrate would be at launch, I could have set the initial difficulty higher. But it was better to err on the low side to protect against 51% attacks around launch time, and that’s what I did.”

The community backlash against Lee’s original tweet and subsequent deletion has been intense.

However, the majority of the sentiment appears to derive from Lee deflecting his situation towards Dash.

As the coin founder explained, litecoin’s launch in 2011 constituted the early days of crypto and he was still largely feeling out the process for getting his currency up and running. Few could have imagined at the time it would hold a market cap of over $5 billion by the end of the decade.

What are your thoughts on this? Let us know in the comments.

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Blockchain News

Breaking Cryptocurrency and Blockchain News 29 July 2019

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Cypherpunks Taiwan has successfully constructed another Bitcoin satellite receiver.

IS THE LITECOIN HALVING GOING TO TRIGGER A NEW BULL RUN?

The Litecoin halving is just a few days away. In the past few months Litecoin, when compared to bitcoin has not done so well. However, Litecoin is only days away from halving, Halving is the event where the number of generated Litecoin rewards per block will be halved, so the total number of Litecoin mined by miners per block will reduce from 25 to 12.5. Many people are expecting the price of this commodity to rise, so in turn, many people are buying Litecoin. So, are we about to see a Litecoin bull run?

Oranco tests blockchain solution

Oranco, a Chinese alcohol wholesaler, is currently testing a blockchain solution to ensure the authenticity of its products. Oranco subsidiary Fengyuang Huaxin Liquor Development has formed a partnership with the blockchain-focused company Guangzhou Silicon Technology. The two companies agreed to co-develop a solution for identifying Oranco’s beverages as genuine.

Bill Millers Hedgefund saw growth of 46%

The hedge fund run by well-known investor Bill Miller saw 46% growth in the first half of 2019, reportedly in some part from investing in Bitcoin. Citing an investor document, it has been reported that Miller gained these great returns by investing in Bitcoin among other high-performing stocks, including Amazon, security system firm ADT, as well as Avon Products.

Taiwan’s Cyperpunks set up Satelite receiver

Cypherpunks Taiwan has successfully constructed another Bitcoin satellite receiver. The island nation is only the second country in Asia to do so after Japan pipped it to the post last year. This setup takes advantage of the controversial Blockstream satellite project that has caused some dismay in China.

DOJ files $100 million lawsuit against BTC exchange

The united states department of justice has filed a $100 million lawsuit against infamous bitcoin exchange BTC-e and its alleged operator, Russian national Alexander Vinnik. Vinnik, who is in custody in Greece as governments worldwide fight to extradite him, has been accused of laundering billions of dollars worth of cryptocurrency stolen from other exchanges.

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