During the last few days, we have been witnesses of real crypto-twitter drama. The creator of LTC, Charlie Lee, took to Twitter to criticize Stellar’s latest coin burn. Mr. Lee claims that by burning only 5 billion of 17 billion that the company previously owned, Stellar created more monopoly than before.
Well, since the Stellar (XLM) coin burn destroyed 50 billion (50%) of all the coins, and the company only burned their 5 billion, their share of all XLMs raised from 16 to 24%.
According to Litecoin’s creator, Stellar needed to ask for community approval at least. Moreover, Lee stated that coins should have been distributed to the community. Maybe the same way as he distributed his LTC two years ago?
It’s not what’s being said but who is saying it
Maybe Litecoin’s (LTC) Charlie Lee forgot that there are some of the crypto old-timers following his profile because, if he remembered, perhaps, he would avoid making such comments.
Yes, we all still remember Charlie announcing that he has sold all his LTC during the crypto bull run hysteria of late 2017. Of course, without discussing it with the community or announcing his intentions. Many people just called it dumping coins on his own investors.
Needless to say, the community exploded after this kind of hypocrisy. Thus, among other similar comments, Twitter user Brittany Rose reacted:
You are criticizing Stellar for this move that increased the price, while you dumped your bags on your followers near the all time high and put your foot in your mouth basically every time you open it.
What to say about Charlie Lee and LTC?
Dumping coins on your investors and followers is never a great idea. Even though you “transparently” announce your betrayal afterward. Charlie Lee is, undoubtedly, one of the biggest influencers in the crypto community. As such, he should be aware that his 835,000 followers dissect every word he says. Moreover, those words stay subconsciously embedded in their minds for a long time.
Litecoin creator had to be aware that he let the whole army of LTC enthusiasts down by dumping his coins near the all-time high. Even more so since there is a good number of them who lost the money in the 2017 bull-run aftermath. Therefore, their anger is justified.
Imagine that if Arthur Levinson calmly announces that he dumped all his 1.16 million of Apple shares in the free market tomorrow. It is highly possible that it would trigger an avalanche of sell-offs, destroying the level of trust towards Apple in years to come.
That didn’t happen to Litecoin, though. At least not to LTC alone, as the whole market crumbled during 2018. Litecoin is suffering a far worse fate than mere investors’ trust deterioration.
As CoinSyncom previously reported in the article about LTC’s declining hashrate, there are no new developers who want to work on this Bitcoin’s fork. This problem may prove to be much bigger than losing investors’ trust.
In the new and emerging technology, it is vital to have developers who will keep the project relevant by constant improvement. Since Litecoin is a decentralized system without the formal company, it depends on the support of developers enthusiasts who build upon the blockchain infrastructure. According to Charlie Lee, LTC has lost them.
Is Charlie a villain?
Some may proclaim that Charlie Lee is, in fact, a villain of crypto space. Still, that is far from the truth. It is the fact that he dumped his coins on his investors. However, that brought him more problems than benefits.
If Litecoin disappears with the rising competition, the whole community will blame the coin dumping creator. Thus, Mr. Lee will have serious trouble getting support for his next project. He may only hope that the dumped LTC will be enough to finance the next venture. Because, and that is crystal clear now, the crypto community remembers. Will they punish LTC for the sins of its creator? It remains to be seen during the next bull market.