Litecoin creator issues stern warning after cryptocurrency doubles in single day
December 13, 20171.4K views0 comments
Cryptocurrencies have exploded since bitcoin futures began trading in Chicago over the weekend.
Litecoin, the fifth-largest coin by market-cap, has seen its value more than double since Sunday afternoon, trading above $300 Tuesday morning — 110% above its weekend price.
Creator Charlie Lee wasn’t celebrating like some other Litecoin holders, though. The former director of engineering at crypto exchange Coinbase tweeted a dire warning for potential litecoin holders Monday night:
“Sorry to spoil the party, but I need to reign in the excitement a bit…,” he wrote. “Buying LTC is extremely risky. I expect us to have a multi-year bear market like the one we just had where LTC dropped 90% in value ($48 to $4). So if you can’t handle LTC dropping to $20, don’t buy!”
That didn’t stop some Redditors from planning celebrations as litecoin passes more milestones.
One user, rashadthedad, claimed he would record himself eating a Carolina Reaper, one of the world’s hottest peppers, if Litecoin passed $300 before New Years Eve. Another user said he would streak down Wall Street in New York before swimming to the Statue of Liberty if the coin passed $1,000 before the same date.
Jay Clayton, head of the Securities and Exchange Commission, also weighed in on the cryptocurrency craze Monday.
“The world’s social media platforms and financial markets are abuzz about cryptocurrencies and initial coin offerings. There are tales of fortunes made and dreamed to be made,” he said. “Investors should understand that to date no initial coin offerings have been registered with the SEC. The SEC also has not to date approved for listing and trading any exchange-traded products (such as ETFs) holding cryptocurrencies or other assets related to cryptocurrencies. If any person today tells you otherwise, be especially wary.” (emphasis his)
Litecoin has mostly lived in the shadow of bitcoin, but has garnered a fan base through its slightly different mining technique which aims to use less electricity than its rival. A recent estimate from the UK said the electricity used to mine bitcoin this year is bigger than the annual usage of 159 countries.
Litecoin is up 5953% so far this year. You can watch its price move in real time here.