The decision by the founder of Litecoin, Charlie Lee, to sell all his remaining Litecoin has divided the community quite a bit.
On the one hand, you have those who view Charlie Lee’s sale positively and a sign of transparency. However, there were others who thought that Charlie was dropping the coin at the peak.
The debate has still not been settled and many people are still continuing to voice their opinion about the move. This includes Charlie himself who tweeted:
Seeing how people lost trust because I sold makes me more convinced that it was the right move. Litecoin was too centralized and dependent on me. Eventually, for Litecoin to succeed, I need to step away. But I promise I won't do that until I've helped LTC climb back past the ATH.
— Charlie Lee [LTC⚡] (@SatoshiLite) December 31, 2017
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Satoshi Lite & Satoshi Nakamoto
The main line of argument that many people have is that Charlie Lee sold out of his coins at the top of the market and now is walking away from his creation.
They claim that without a stake in the coins that he helped create, he would not have an incentive to continue working on the improvement of the cryptocurrency.
There is also the perception that Charlie Lee is Litecoin and hence his “exit” means that the coin itself will likely tumble. This merely shows a lack of the understanding of the open source and decentralised cryptocurrencies.
There is also another famous case of a coin creator walking away from his creation.
Satoshi Nakamoto was the creator of Bitcoin. He developed the white paper and was instrumental in the launching of the coin. However, after the community picked it up, he left his creation to let if flourish.
He completely stopped interacting with the community and trusted that the range of Bitcoin developers could work on the advancement of Bitcoin without him.
In the case of Charlie Lee, this is not even the case. Yes, he has sold his coins but he will actively continue to work with the Litecoin foundation for the advancement of his creation.
Charlie has indeed been busy working for the improvement of Litecoin. For example, he has just announced that they are trying to add Litecoin as a payment on Open Bazaar.
OpenBazaar is the marketplace integration I was hinting at. We are excited to be working with the @openbazaar team on adding Litecoin! https://t.co/EX8tpKU2h3
— Charlie Lee [LTC⚡] (@SatoshiLite) December 30, 2017
This was some important “inside” information that Charlie had. Knowing that there could be a rally in the price of LTC upon this disclosure Charlie thought it wise to clear his conflicts.
Moreover, for those people who claim that CEOs or founders should have “skin in the game” clearly have selective amnesia. Was it not the bankers in 2008, working on share and bonus structures that crashed the world Economy?
These people had a lot of skin in the game and because their pay-outs were inextricably linked to the performance of the stock, bad things happened.
Money is Not Everything
Image via Fotolia
While it may be hard for many of the “Moon” and “Lambo” centric cryptocurrency traders of today to understand, money is not always the most important driving factor.
Indeed, the cryptocurrency community is currently going through an identity crisis where the space has been taken over by return focused boyish banter rather than about the purpose of cryptocurrency itself.
In the case of Charlie Lee, he is no doubt already quite well off. The added profit that he would gain from holding his Litecoin is not as important to him as it is to see Litecoin succeed.
In fact, one could argue that Charlie has more to lose from a failure in Litecoin than anyone else. It is his name to the coin as well as his reputation on the line.
Moreover, Charlie seems to be passionate about cryptocurrencies in general. He covers the topic passionately and has always been a driving force for the benefits of the decentralised community.
Keep Calm and HODL
At the end of the day, Litecoin is technology that is itself powerful. This should be the basis for most investments in cryptocurrency.
Whether someone is actively invested in a project should be of lesser concern. For example, those traders who have been following John McAfee’s coin of the day tweets have also lost money.
Don’t buy into hypes and don’t allow certain “FUDsters” to detract from the amazing technology that Charlie has helped build.
Either you can HODL your Litecoin and focus on the future or you can sell and reside yourself to it.
Yet complaining about the move by Charlie is counterproductive.
Featured Image via Youtube.com