Litecoin Cash – Legit Litecoin Fork or Bitcoin Cash Copycat?
Litecoin is one of the leading altcoins in the world of cryptocurrencies. Commonly referred to as the silver to Bitcoin’s gold, Litecoin is one of the oldest and most trusted cryptocurrencies out there. After a temporary decline in price during the February 2018 crypto crisis, Litecoin is back stronger than ever, registering a value growth of over 30% in under 24 hours on February 15th. According to the media, the spectacular price growth is backed by several factors – including the worldwide popularity and use of the LitePay system, as well as the integration of Litecoin payments within the Coinbase Commerce software. However, there’s one more event that justifies the LTC’s price growth – the news about an upcoming fork.
First announced on February 3rd, the currency known as Litecoin Cash (LCC) is supposedly aiming to fill in a number of gaps that exist in the current cryptocurrency niche. The currency is supposedly based on the same algorithm as Bitcoin, which is SHA-256, as opposed to Litecoin, which is based on Scrypt. However, LCC is said to have the same transaction bandwidth as Litecoin (four times that of BTC), as well as much cheaper transactions. All that to say that LCC tries to appeal to the old Bitcoin mining crowd that gave up on mining with the rise of the hefty SHA-256 ASICs. LCC could possibly revive SHA-256 mining and put all those GPU rigs to work again, which certainly sounds promising.
The Litecoin Cash website is kicking off the project on February 18th and allows investors to claim LCC tokens for LTC in a 10:1 ratio. The website also states that LCC has a much higher supply than Litecoin (840 million as opposed to 84 million.)
Despite all of these ‘pro’ arguments, Litecoin Cash is not an official Litecoin fork. Minutes after the news about the LCC fork started going around the Internet, Litecoin founder Charlie Lee tweeted ‘The Litecoin team and I are not forking Litecoin. Any forks that you hear about is a scam trying to confuse you to think it’s related to Litecoin.’ In response, the Litecoin Cash website states ‘We’re using the Litecoin Cash name simply because it has become customary in recent months for a coin which forks a Blockchain to prefix its name with the name of the coin being forked. This practice has become a widely understood convention. We’re not associated or affiliated with Charlie Lee or any of the Litecoin team in any way.’ This and the fact that the Litecoin Cash website has no whitepaper or any significant links to a known team of developers has raised a lot of suspicion about the new currency.
Although the situation is highly reminiscent of the Bitcoin Cash fork that happened a couple years ago, Litecoin Cash is in a more delicate situation. When a CC notoriety like Lee tells you off as a ‘scam’ before you even get to launch a project, you’re probably going to have a hard time attracting investors or getting your coin on the main exchanges. However, Litecoin Cash might as well make it big, depending on how the developing team goes about the project.