Litecoin Falls 10% After 'LitePay' Closed

Inforexnews

Litecoin is trading about 10 percent lower close to $ 145, according to CoinMarketCap. On Monday (26/3), the Litecoin Foundation, a nonprofit to promote litecoin and investors in LitePay, said on its website that LitePay CEO Kenneth Asare told the organization "a few days ago" that "he has stopped all operations and is preparing to sell the company. "" I apologize for hypnotizing this company and vowing to do a better due diligence in the future, "Litecoin maker Charlie Lee said in his tweet.

Litecoin fell in trading on Monday after news that LitePay's payment processor has stopped operating, prompting apology from coin co-founders to promote start-ups.

Litecoin is trading about 10 percent lower close to $ 145, according to CoinMarketCap. Litecoin is down about 28.5 percent for the month and 37.5 percent for the year so far.

Litecoin united in mid-February, partly because of LitePay's announcement that the merchant payment processing system for litecoins will air on February 26th. But in an email to customers on March 5, LitePay said it was still "checking all merchant perspectives" and was delaying the card enrollment "due to negative perceptions and drastic actions of card issuers against cryptocurrency companies." However, the company has not submitted updates since then.

The company said it rejected Asare's request for further funding after Reddit's "Ask me nothing" session on March 16 raised questions about how the funds were used.

"Like everyone else, we are too excited about something too good to be true and we are optimistically ignoring many warning signs," litecoet creator Charlie Lee said in a tweet. "I apologize for hypnotizing this company and vowing to do a better due diligence in the future."

Lee said in December that he would "sell and donate" almost all of his coins.

In February, Asare said that his team has been working in development since the summer of 2017. "Our goal is to create a way for traders to earn Litecoin, which is an excellent cryptocurrency for payments," he said. .

Litecoin is the fifth largest cryptocurrency by market capitalization of $ 8.1 billion, according to CoinMarketCap. The decline occurred on Monday (26/3) because other curricullocurrency currencies also fell. Bitcoin fell 7 percent to below $ 8,000.

"Litecoin is fine before the LitePay promise and will continue to do so," the Litecoin Foundation said on its website.

US regulators and companies have taken steps in recent months to crack down on fraudulent activity in cryptocurrency. The US Securities and Exchange Commission has frozen their assets involved with some token sales, and Texas has issued several preventive orders and stopped at its cryptocurrency.

On Monday (27/3), Twitter followed Google and Facebook in announcing a ban on advertising for cryptocurrency.