Litecoin (LTC) – Living in a Roller Coaster of Prices

Litecoin (LTC) – Living in a Roller Coaster of Prices

Litecoin (LTC) – Living in a Roller Coaster of Prices

Yesterday, Litecoin (LTC) jumped straight up to the position of Crypto Leader board after an Amex backed startup explained that its moving away from Bitcoin smart contracts in favor of Litecoin (LTC).

Examining LTC/USD Price Levels

As I said, yesterday Litecoin outpaced all the rest of the Crypto Market, gaining as much as 15% during the whole trade day. Comparing this percentage to the rest of the Market Cap, the latter only rose as much as 8%.

The max value Litecoin hit yesterday was $136 USD. At the same time that its market cap rose up to $7,5 billion USD, both values only saw a price like that 7 days before, on March 28th– around the time the partnership with Abra App was confirmed.

Abra App Embraces Litecoin

Abra, is a digital wallet backed by American Express, is expanding on its use of Litecoin smart contracts to power its exchange services. On Monday, in a Reddit AMA session, Abra’s CEO Bill Barhydt, explained why Litecoin was on its company’s radar and why it was easily going to replace Bitcoin as the smart contract of choice.

To have a fully detailed explanation on this partnership and how Smart Contracts will work on this Application, here is a link.

In that Redit AMA session Barhydt cited three reasons behind his company’s decision to go with Litecoin rather than any other cryptocurrency “We went with Litecoin as the second asset class, after Bitcoin, for our smart contract investing solution for 3 primary reasons: 1- commitment to bitcoin compatibility: core roadmap, p2sh support, lighting support, etc.; 2- slightly better scalability than bitcoin in short term (block size and block times); 3- mining fees which are primarily a function of #2 although this is more of a short term benefit as mining fees would likely sky rocket if we are successful anyway!”

What Abra has developed is a smart contract-based investment platform. This platform will allow users to store cash deposits and conduct transfers between two smartphones. On the beginning of this month we will be able to see the service using Litecoin as its underlying technology to facilitate these deposits and transfers.

Charlie Lee, founder of Litecoin, confirmed this exact partnership last month via Twiter, on the following tweet:

Barhydt, even choosing Litecoin over Bitcoin on this partnership, keeps extremely bullish over the digital currency’s long-term prospects. Recently, he said that “bitcoin’s bull market” will resume in a very near term. This will happen since, hedge funds, high net-worth individuals and commodity speculators are about to enter strongly in the crypto market.

Why Litecoin’s price did went down after such a green run?

I am sure that all the holders of Litecoin were already with their hopes up by watching its price and market cap going up with no will to stop. But, on today’s morning, April 4th, Litecoin fell again to the same price position it was 2 days ago.

The main reason for this fluctuation, in my point of view, is: Even with Abra’s announcement making investors and traders interested in going after Litecoin, this partnership is still under a big shadow in Litecoin’s news- The closing of Litepay just weeks after it opened for business.

As Charlie Lee said after that even “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” he also added “I am sorry for having hyped up this company and vow to do better due diligence in the future”.

Of course, as something like this happens in the cryptoverse, the people get scared and suspicious, thinking it was a “scam”. In my opinion, I can only say, people have all the right to be careful and watch their steps before throwing money to a cryptocurrency. But, to call something a scam, it is always a bold statement, until further proof. Especially if talking about a platform like Litecoin. That is almost daily, giving us reasons to believe in their work, updating us on their developments and making us proud of talking about blockchain technology and what it will bring to the future.

It is understandable that these prices are very volatile and it will be like this until the market makes its cleansing in order to reach a perfect balance. But I can assure you that when that balance is made, no one will call Litecoin a blockchain platform a scam, because by that time we will see that Litecoin was always pushing us forward.

Leave a reply


There are no comments on this post.

Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.

CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.

Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.

When trading in stocks your capital is at risk.

Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.