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What You Need to Know About the Litecoin Hard Fork

What You Need to Know About the Litecoin Hard Fork

Daily Litecoin News Update

It’s a peaceful day in the in any other case stormy crypto world. There hasn’t been a lot noise in the final 24 hours. Cryptocurrencies are buying and selling in inexperienced. Litecoin, particularly, has been the second-best performer in the prime 10 ranks with 7.36% beneficial properties in the previous one day. At the time of writing, the LTC to USD charge was barely shy of $160.00.

One principle why demand for the coin appears to be strengthening is due to the upcoming “hard fork.” We can’t say for sure, nevertheless it’s a prospect we’ll discussing as we speak.

Litecoin is about to cut up and founder Charlie Lee warns buyers to avoid the new crypto that’ll take delivery following the cut up.

A workforce of builders is splitting (exhausting forking) Litecoin to create a brand new crypto known as “Litecoin Cash.” The Litecoin exhausting fork is predicted to happen on February 19, 2018.

How does this have an effect on you?

Following the exhausting fork, Litecoin holders will probably be issued 10 Litecoin Cash cash for each Litecoin they personal. So should you’re an LTC HODLer, good for you. You might pocket these free tokens, and in the event that they end up to be value something, you may promote them to increase your Litecoin holdings.

But should you’re trying to purchase Litecoin for no higher motive than to get some free cash, then proceed at your individual discretion as a result of this can be an enormous pitfall.

The proven fact that this mission is totally opaque with little to no verifiable public info raises big query marks. There’s additionally no certainty if there’ll truly be a tough fork in any respect.

Any laptop programming savvy particular person can declare to exhausting fork a cryptocurrency. After all, their codes are simply accessible on GitHub. Having seen far too many circumstances of pump-and-dump on this area, we’re starting to take such bulletins with a grain of salt.

There are no less than three massive crimson flags for me right here that may deter me to commerce Litecoin Cash.

First, the id of the builders is totally nameless. There aren’t any names or pictures, and no verifiable info that may permit us to put a face to the particular person(s) accountable for this mission. This increases obscurity.

Secondly, the motive to exhausting fork stays ambiguous. It might have made some sense in the case of Bitcoin, when it was exhausting forked to create Bitcoin Cash—an offshoot that made it cheaper and quicker—however we don’t see the logic behind Litecoin’s cut up.

Litecoin is already low cost and quick to transact in. Users have just about by no means had an issue with LTC as they did with Bitcoin. It’s value declaring right here that though the builders known as it the “real Bitcoin,” Bitcoin Cash failed to substitute Bitcoin. Despite having practically the identical provide as Bitcoin, Bitcoin Cash trades for about one-sixth of its worth. Nearly half a dozen different Bitcoin exhausting forks that adopted likewise turned out to be duds.

Since Litecoin Cash could have a coin provide 10-times that of Litecoin’s, we anticipate it to commerce for pennies on the greenback.

Finally, and most significantly, Charlie Lee has explicitly warned buyers to contemplate all Litecoin exhausting forks as scams. Here’s what he has to say on the matter.

charlie lee tweet

There’s no motive for us to not take heed when all indicators are pointing towards the Litecoin exhausting fork.

Analyst Take

The Litecoin exhausting fork might create a momentary diversion nevertheless it mustn’t have an effect on Litecoin in the long term. At this level, we have now no motive to change our Litecoin worth forecast for 2018, which stays robust at $400.00 an LTC.

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