Charlie Lee, inventor of the planet's fifth-biggest cryptocurrency, cashed in during a 75-fold rally this year.
The San Francisco-based software engineer whose Litecoin was set in 2011 “sold and donated” all of his holdings over the past few days, he explained in a Reddit post. The disposal was aimed at averting a “conflict of interest” Lee makes remarks on social media concerning the digital currency that could influence its price, he explained.
“Litecoin has been very good for me financially, so I'm well off enough that I no longer need to tie my monetary achievement to Litecoin's success,” Lee stated. “For the first time in six years, I no longer own a single LTC” besides a couple collector's coins.
Lee declined to comment in the post on the number of coins he offered or at what cost, but noticed that the amount proved to be a small proportion of daily volume and “did not crash the market”.
The good thing for Litecoin investors “is positive as it enables him to talk freely on social platforms”, said Michael Kazley co-founder of Crescent Crypto Asset Management, a US passive digital-asset fund. “On the other hand it's also negative, because it's hard to evaluate his go-forward monetary incentives”
Lee said Litecoin's price may now take a “short-term dip due to people losing faith believing that I've lost religion”, Lee said in emailed answers to questions from Bloomberg. Ultimately though, the move will be good for the token long term, ” he explained.
Slump Of 4 Percent
Litecoin dropped about 4 percent to $319USD, from $416.15USD at 1:02pm in New York, according to prices on Bloomberg. The coin is still up about 75-fold since the end of 2016, based on coinmarketcap.com prices.
The market value was $17.5USD billion. It hastens on Wednesday with a number of the largest digital monies reduced after a series of news reports involving hacking and interventions by regulators. Lee insisted that his selling was not a sign that he has lost faith in the cryptocurrency.
“I am still working on litecoin full time,” Lee stated via email. “That hasn't changed. If anything, I'm more focused and less distracted by price.”
And how does it feel to take profits on a high in the crypto boom that has been described as the biggest financial bubble of all time?
“Unusual” but also “somehow refreshing”, Lee stated from the Reddit blog article.