Currently, Litecoin holds the position of being the fifth biggest cryptocurrency amongst all, and that is really lit as the name suggests.
On February 14, the token reached a month-high by appreciating by almost 30% in a day and reached $218. If we compare it to the price on February 6 which was of $105, the prices boosted by 100 percent. However, the reason for a surge in price is on the other hand quite surprising.
‘Litecoin Cash’, a hard fork that has been hyped around is said to release on February 18 under which the developers have promised to give new tokens to the holders of LTC. For a single LTC, the holders of them will get 10 Litecoin Cash and there are 1,371,111 holders.
Understanding Hard Forks
But what does Hard Form mean anyway? Hard Fork is when a single currency is split into two and the primary reason of it can be changed` in the code that is behind the token or creating a new version along with a new one. But this cannot be done without the consensus of the coin holders.
For this, one can take any number of holders that have the maximum number of coins and can ask them to create a whole new cryptocurrency over the top of the original one.
How does LCC Differ from LTC?
But then how is it different from others, like Bitcoin Cash and Bitcoin Gold? Of course, LCC is an altogether a new token but there are subtle changes between the two – LTC and LCC.
LCC will use the algorithm that is used by the bitcoin users – SHA-256, on the other hand, LTC uses Scrypt. This will be beneficial for the Bitcoin users as they will be able to mine it.
Further, the fee would be 90% cheaper and 4 times the bandwidth of LTC, which will enable to deal in larger transactions.
What are people saying about it?
The reaction is positive from the users and they are certain that there will be potential as made evident by the recent spike. However, it does come with a pinch of salt.
Charlie Lee, the founder of Litecoin tweeted,
“Since on the topic of scams, any fork of Litecoin, calling itself Litecoin something or other, is a scam [in my opinion]. Litecoin Cash, Litecoin Plus, Litecoin *… all scams trying to confuse users into thinking they are Litecoin.”
He later added,
“These scammers have also started to block me before they reply to my posts. So I don’t even see their posts. Twitter needs to do some machine learning to hide these scam and spam posts. It’s really getting out of hand. And those “join pump group” posts. People this gullible?”
Apart from all this, CoinDesk also said that the surge in the price is because of the high number of trades from Coinbase’s GDAX exchange. Right now it is unclear whether the hype will continue till the fork or will just die down slowly. Time will tell.
What do you think about Litecoin’s recent rise to fame? Do you think it’s there to stay or will it experience a drop?