Litecoin (LTC) price stalls as Charlie Lee explains the latest partnership

Litecoin has suffered a faith similar to most altcoins on the market as of late. Reaching a monthly low of $75,66 on July 12 (after a week-long drop-off), the coin lingered in a sideways pattern for a couple of days before its USD value spiked significantly thanks to BTC recovering almost 1000 USD of its value. At the top of this run, LTC vas valued at $93,65, or 0,0124 BTC. It has since experienced a drop in both its USD and BTC value and is currently traded at $87.17 USD/0.01170120 BTC, which are solid 4% drops from the mentioned highs. With a market cap of $5,010,428,095 USD, Litecoin maintains its position as the 7th most valuable cryptocurrency in the world.

At the moment, LTC is dealing with a resistance at $88,00, with the current support sitting just above $87. A break above the resistance would lead to a re-test of a stronger one, located at $90. RSI and MACD indicators seem positive, implying that bullish movement is expected short term. Mid-term the coin will be looking to break through the $95 resistance and reach three-digit price for the first time since mid-June.

Litecoin Foundation, the centralized non-profit that stands behind Litecoin and advances its development and adoption, recently joined TokenPay in a deal to acquire a stake in the German WEG Bank. The community immediately reacted rather negatively, as they saw this as Litecoin looking to cozy up with the “old money” or even promote TokenPay, a company that has so far been well known only for its partnership with the much-maligned Verge (XVG). Charlie Lee, the leading man of the foundation and creator of Litecoin, immediately went to Reddit and explained the partnership with a lengthy, multi-post response.

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After clarifying the difference between Litecoin and Litecoin foundation, Lee said the following:

“The deal is that LF [Litecoin Foundation] receives the 9.9% stake in the bank in exchange for technical work and marketing support for TokenPay, eFin decentralized exchange, and integration with the bank. To be clear, LF did not pay any money for this stake in the bank. The plan is also for me to get a board seat at the bank.”

Lee himself has drawn ire of many crypto experts after publicly admitting he sold all of his Litecoin, which resulted in the currency losing a lot of credibility and value. Still, he remained highly active on his position as Litecoin CEO and has confirmed that Litecoin ICO money was used to purchase this bank. He foresaw two possible conclusions to their new purchase: Either the bank will allow the partners to release debit cards and other currently fiat-related upgrades in liquidity and commodity of use to Litecoin/TPAY. Or the partnership will fail for whatever reasons, hurting LF’s reputation and having “no material impact on LF or Litecoin”.

Some parts of the community were swayed into retaining faith in the project, others (like Tone Vays who straight up called Litecoin and TokenPay “scams”) not so much. Only future will tell if this partnership will bring anything positive for everyone involved, as well as the crypto community in general.

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CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com

Dobrica Blagojevic
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