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:
Second piece of good news today. @AbraGlobal has chosen to launch its newest product on the Litecoin network after a long and thorough research. Abra lets you invest in all sorts of cryptocurrencies all hedged with smart contracts on Litecoin! 🚀https://t.co/OHHfERHOT8 pic.twitter.com/G51u5PE6uF
— Charlie Lee [LTC] (@SatoshiLite) March 15, 2018
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.