Why did Charlie Lee sell his Litecoin (LTC)?
The answer to all your key questions around Charlie Lee selling his Litecoin (LTC).
On December the 20th, 2017, Charlie Lee sold all of his Litecoin.
Citing a perceived conflict of interest and personal reasons, Lee let both the Litecoin community and the world know at the same time via this Reddit post.
While it may have been the right decision in Lee’s eyes at the time, the Litecoin community certainly felt betrayed that their leader sold his stack at what was at the time, all-time highs.
This section of our Litecoin (LTC) guide answers some of the key questions around the sale and finally looks at where LTC is now compared to when Charlie Lee sold his Litecoin.
Was Charlie Lee’s Litecoin investment really a conflict of interest?
Whether it actually was or wasn’t is irrelevant.
The thing is that Charlie Lee felt that his Litecoin investment was a conflict of interest and therefore felt he had to sell.
Lee has consistently said that he did not sell for any personal gain, instead selling to eliminate the risk that he could sell at any time.
Seen as Litecoin’s Satoshi Nakamoto, the perception was that he had to have a large, which unlike Satoshi’s, could be dumped on the market at any time.
After selling his Litecoin, any perceived conflict of interest was removed and the project could become truly decentralised.
Did Charlie Lee have a big LTC stake?
Funnily enough, Charlie Lee continues to deny that he actually had a significant stake in Litecoin.
This of course makes the impression of risk we spoke about in the section above completely mute.
But rationality has never been one of the strong points of a market and as you’ll soon see on the chart, the price of Litecoin took a massive hit at the time!
If this was truly the case, then by selling his Litecoin, Charlie Lee couldn’t have actually moved the market itself.
But the rest of the market didn’t care and this is what hurt long term Litecoin HODLers the most at the time.
I mean what did Lee expect to happen here?
Has the price of Litecoin recovered since Charlie Lee sold?
Yes, the price of Litecoin has recovered, but boy did it take a hit at the time.
Check out the following Litecoin weekly chart with the point that Lee sold marked by the red arrow:
From $275ish, all the way down to $20 is one heck of a fall and you can see why the Litecoin community and fellow HODLers may have felt a little hard done by when their leader sold out.
But just like the rest of the market, you can see that Litecoin has since recovered.
Litecoin has resumed its bullish trend and has now firmly etched itself as a top 20 coin by market cap.
Charlie Lee still sold higher than the current prices, but it’s at least respectable now.
Where is Charlie Lee now?
Charlie Lee is still heavily involved in Litecoin, working as the Managing Director of the Litecoin Foundation.
While he may have sold his coins, he never actually stopped driving the project forward.
With price now back to where it is and Litecoin clinging to its place in the top 20 coins, I wonder Charlie Lee truly regrets selling his stack at that time.
There’s no doubt that with a little more communication and transparency, he could have held onto his stack in some way shape or form and eased the market’s fears.
But I guess we’ll never truly know now.
You know what they say about hindsight…
Best of probabilities to you.
Direct from the desk of Dane Williams.
Why not leave a comment on Charlie Lee selling his Litecoin (LTC)? All comments that add something to the discussion will be upvoted.
This Litecoin (LTC) blog is exclusive to leofinance.io.
Posted Using LeoFinance Beta
