Cryptocurrency & Blockchain Business

The LitePay Fiasco and Litecoin Downfall

LitePay was supposed to bring new light to Litecoin (LTC). LitePay was not only going to offer a new crypto wallet specific for LTC, but also the LitePay debit card, which users could have used to convert Litecoin into U.S. fiat currency. Instead, ineffectual business handling and less-than-communicative responses have led LitePay to lose its support from the Litecoin Foundation and for the whole operation to be shut down.

The Litecoin Foundation released a post on Monday stating that the Foundation “was contacted by Kenneth Asare, CEO of LitePay, informing us that he has ceased all operations and is preparing to sell the company.”

So, LitePay is no more.

The Foundation claims that it contacted Asare previously to express concerns about the company and try and get more information about its business:

“It was at this time that Kenneth asked the foundation for more funds to continue operations. The foundation refused any further funding as he was unable to provide a satisfactory picture of where the money had been spent and refused to go into exact details about the company and show objective evidence to back up his statements.”

The Litecoin Foundation has said of the matter:

“We are greatly disheartened that this saga has ended in this way and we apologize for not doing enough due diligence that could have uncovered some of these issues earlier.  We are currently working hard to tighten our due diligence practices and ensure that this does not happen again.”

Litecoin founder Charlie Lee also apologized to the Litecoin community on Twitter:

People have responded and taken their disappointment to Twitter, some going as far as to call Lee out for his prior practices:

(To which Lee responded that he sold his LTC before LitePay was announced.)

Others, however, are continuing to show their support for Lee and Litecoin:

How’s Litecoin doing on the news? Well, LTC is currently down 3.52% in the past 24 hours, selling for $139.80. However, in the grand scheme of things, this isn’t such a huge loss, especially given the fact that much of the crypto market is currently struggling.

The Litecoin Foundation emphasized that “Litecoin was doing perfectly fine before the promise of LitePay and will continue to do so.” 

What do you think? Will Litecoin recover from the fumble that was LitePay? Have your feelings changed towards Litecoin? Let us know in the comments below.

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Samara Malkin

Samara Malkin

Samara graduated from Simon Fraser University with a BA in English, minoring in Publishing and Creative Writing. She currently specializes in writing financial news and analysis, as well as cryptocurrency news and information.

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