Payment Processor LitePay Fails - Litecoin Community Suffers the Consequences

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Litecoin is one of the oldest cryptocurrencies on the market. It has been during the last years in the top 10 cryptocurrencies by market capitalization and it has a very interesting team behind. LitePay, one of the most promising projects around Litecoin, has announced that it is closing its operations.

LitePay Fails

The Litecoin community was anxiously waiting for LitePay to be operating in the next weeks. Unfortunately, the company said that it stopped operating. The information was released by the Litecoin Foundation on a blog post on March the 26^th.

The statement start explaining that Litecoin Foundation was contacted by the CEO of LitePay, Kenneth Asare, explaining that he wanted to sell the company.

“We wanted to inform you that a couple of days ago, the Litecoin Foundation was contacted by Kenneth Asare, CEO of LitePay, informing us that he has ceased all operations and is preparing to sell the company.”

Litecoin foundation started to be worried due to the fact that Mr Asare did not properly explain where the funds donated have been used. Furthermore, the company did not have a clear position explaining the operations they were undertaken.

The blog post describes:

“The foundation had approached Kenneth regarding his less than transparent nature with the company and to express our, and the community’s concerns regarding his recent Reddit AMA. It was at this time that Kenneth asked the foundation for more funds to continue operations.”

Furthermore, he did not provide any satisfactory evidence about how he was using the funds to improve the services and products.

The foundations refused any further funding as he was unable to provide a satisfactory picture of where the money had been spent and refused to go into exact details about the company and show the objective evidence to back up his statements,” reads the blog post.

Litecoin Community Disappointed

Litecoin community was very anxious about this development. Litecoin was going to be used in many different places and reach a far bigger audience than now. Unfortunately, things changed and now the Litecoin ecosystem is suffering from this situation.

“We are greatly disheartened that this saga has ended in this way and we apologize for not doing enough due diligence that could have uncovered some of these issues earlier. We are currently working hard to tighten our due diligence practices and ensure that this does not happen again,” explains the post.

Charlie Lee has also given his opinion on the matter. He explained that the community “got too excited about something that was too good to be true.”

Like everyone else, we got too excited about something that was too good to be true and we optimistically overlooked many of the warning signs. I am sorry for having hyped up this company and vow to do better due diligence in the future. https://t.co/khIjeHnyZ1

— Charlie Lee [LTC] (@SatoshiLite) March 26, 2018

At the moment, Litecoin is being traded around $140 and it is losing ~11,33%. It is still the fifth cryptocurrency by market capitalization with $7.91 billion dollars.

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