Charlie Lee, the creator and lead developer of litecoin, has said that he’s sold almost all of his coins. Which comes after the crypto’s rapid gains this year —up 274% in December alone, and 6,894% in the year-to-date.
Why did Lee sell his Litecoins?
Lee says that apart from holding on to a few coins for sentimental reasons, he’s done with litecoin. He wants to distance himself from a growing conflict of interest. Something that his critics have hounded him over. He comments:
‘…whenever I tweet about Litecoin price or even just good or bads news, I get accused of doing it for personal benefit. Some people even think I short LTC!’
Lee says that he never bought or sold litecoin after a major announcement. He was committed to being impartial. But he notes that there will always be doubt. Which is why he sold the majority of his stake in litecoin.
Depending on how many coins he owned, it could have made him extremely wealthy. Though he won’t disclose the exact amount, stating:
‘I can tell you that the amount of coins was a small percentage of GDAX’s daily volume and it did not crash the market.’
At time of writing, GDAX has a 24-hour volume of 1.4 million litecoins exchanged for USD. Meaning that even if Lee’s sale only accounted for 1% of all trades, it would still net him a cool US$4.4 million.
But that’s money that Lee says is no longer his. He says that he has donated all of it.
Lee still committed to Litecoin’s development
In saying all that, Lee hasn’t quit the litecoin project just yet. He affirms that he is still committed to the coin’s development. He comments that his success is no longer tied to the actual value of litecoin:
‘When Litecoin succeeds, I will still be rewarded in lots of different ways, just not directly via ownership of coins. I now believe this is the best way for me to continue to oversee Litecoin’s growth.’
An opportune exit
Lee’s announcement came just hours prior to crypto exchange Coinbase being accused of insider trading.
Coinbase added the option to trade bitcoin cash this week — a coin which split off from the original bitcoin in August this year. Both coins now co-exist in the market.
Coinbase saw a frenzy of traders looking to get a hold of some of the newly-listed crypto. But watchful traders noticed bitcoin cash’s price climbing rapidly before the Coinbase announcement and launch.
It’s prompted allegations of insider trading, something that could cripple the company if found to be true.
Coinbase says it has launched a full internal investigation, but we’ll have to wait and see if there are any major consequences.
Bitcoin Cash price surge
Not that the news did anything to stop bitcoin cash’s continued surge. The crypto is now up 123% in the past week…and climbing.
It’s an opportunity you can’t afford to miss out on. Find out more about the secret world of bitcoin right here.
Junior Analyst, Money Morning