Recently Charlie Lee the founder of Litecoin tweeted, “Be careful out there!” after the Litecoin cash was launched. Litecoin is the fifth largest cryptocurrency and its spin-off didn’t quite go down well with Lee who called the project a scam and asked the users to “not fall for it.” even though the developers have distanced themselves from the original coin and due to this reason the harsh comment shocked plenty in the Litecoin Cash team.
Yes, many of the other projects are trying to create a new cryptocurrency through forking, but Litecoin developers say that they aim to develop an exchange that is much better and faster by leveraging the current codebase. Further, they also plan to change the algorithm to that of the bitcoin so that to bring a new life to the mining equipment.
But users, on the other hand, are more reinterested in the free money they will receive. The existing users are already hyping up the cryptocurrency which is taking the price of Litecoin to some remarkably new highs. This is because the users that hold Litecoin will immediately get Litecoin cash for free.
Further, the name Litecoin cash is to draw in more attention and also a reference to the successful fork bitcoin cash, to which even the developer of Litecoin cash, Tanner, admits that “Community engagement is the key to success for any coin. I think that ‘Hey, you already own this, why not check out what we’re doing?’ is a good jumping off point for people.”
They also plan to use the free coin as a giveaway such that they are able to create a faster network than Bitcoin, with a lower transaction, making the two cash projects differ from each other.
Bitcoin cash had a support of those who had a technical vision, but on the other hand, Litecoin cash does not function on this idea.
Two Worlds Apart
When the debate for bitcoin cash started, users and developers were not sure how things will turn out. After years of debate, the Bitcoin community finally created a community and are not the pioneers in the forking world. They were not sure if they are creating a coin that people might use.
Although the coin did not replace the Bitcoin, however, it gained in value and is at present the fourth most important cryptocurrency by market cap, which attracts a lot of users due to its roadmap.
But on the contrary, Litecoin does not seem to have the same roots as bitcoin, which is creating doubts like those of Lee. Lee worries since Litecoin cash is not associating itself with Litecoin this will bring confusion in the minds of the users,
“It confuses people into thinking Litecoin is splitting. The Litecoin community has no interest in splitting. It’s just some people trying to make a quick buck. And calling it Litecoin gives them some legitimacy.”
He even added that there has been no debate on the mining algorithm they are using, sha256, which the Litecoin cash want to implement to which Lee said, “No one wants to fork Litecoin to sha256. That’s pretty stupid.”
To this, Tanner responded, “Yes, I can understand that confusion. I can also understand people who are yelling ‘scam. I think [Lee]’s absolutely right to stick to his guns and protect his project and community. I don’t expect him to change his mind about us but hope that if anything he’ll eventually recognize that we’re trying to teach people to be safe.”
But users said that “We want the fork for free coins which potentially may be real or scam.” This shows users don’t really care about the safety for now.
Is Forking a Good Idea?
Lee’s comments take a swipe at forks, majorly because of brand confusion. For instance, even if bitcoin cash does not have any relation to the actual Bitcoin, then why does it take with it the name Bitcoin?
Another developer also asked to sue the project if they have Bitcoin in their name which brings confusion amongst the users. Even though the suggestion wasn’t taken positively but it proves the point that the developers don’t have proper control over the entire situation.
Litecoin cash defended this by saying that they used Litecoin as the prefix because it has become a trend lately. To this, Tanner said, “Anyone who’s paid attention through the bitcoin forking period hears ‘Litecoin cash’ and instantly understands that it’s a fork of Litecoin.” He also added I can’t deny it also appealed to our sense of humor to poke the wasp’s nest with our naming choice.”
And this is actually working as well since Litecoin cash has drawn a lot of attention already. He also said, “There will be forks that follow us, who do seek to confuse you and do seek to scam you.”
But Lee is still not convinced and concluded by saying,
“In my mind, it’s just a scam and it hurts Litecoin.”