Ever since Litecoin Foundation announced its partnership with TokenPay, it has become the most controversial topic in the cryptoverse. The partnership even drew the attention of a crypto-influencer and Bitcoin advocate, Tony Vays. In his series of Tweets, Tony has criticised both TokenPay and the creator of Litecoin [LTC], Charlie Lee.
As a retaliation for all the backlash, on 17th July, Charlie Lee the creator of Litecoin [LTC] and the Managing Director of Litecoin Foundation posted a clarification on Reddit regarding the partnership.
Charlie Lee started off by explaining the difference between Litecoin [LTC] and Litecoin Foundation. He said that Litecoin [LTC] is a decentralized network and currency, whereas Litecoin Foundation is a centralized non-profit organization whose ‘main mission is to advance Litecoin development, adoption, and usage’. He also mentioned that Litecoin does not need him currently and he is working hard with the Litecoin Foundation to make Litecoin a success.
The Managing Director says:
“If LF [Litecoin Foundation] is not doing a good job, nothing prevents another organization to step up and do better. This exact situation actually happened last year when LF came into existence because the Litecoin Association wasn’t doing a good job.”
Moreover, Charlie says that when investors invest in Litecoin by buying LTC, the money does not fund Litecoin Foundation and in some ways, the Foundation works for free to help the investors increase the value of their investment.
Proceeding this, the Creator of Litecoin speaks about the partnership. Litecoin Foundation announced a partnership with TokenPay, a decentralized exchange where they will be acquiring a 9.9% stake. The foundation will be doing the technical work and provide marking support for TokenPay and integrate with the bank as a part of the deal.
Charlie Lee says:
“To be clear, LF did not pay any money for this stake in the bank. The plan is also for me to get a board seat at the bank.”
Furthermore, Charlie lists down the best case and worst case scenario of the partnership.
- They will be able to create and deliver cryptocurrency solutions like debit cards, merchant processing and other innovative solutions.
- Higher chance of succeeding and being approved by the player in the current financial systems like Visa and SWIFT.
- Financial benefit with the stake in the bank which in turn will help the Litecoin Foundation and its mission.
- The partnership would damage the foundation’s reputation if it fails.
After which, he says that the reputation of the foundation is important but it will not have an effect on the Litecoin network and the currency. Charlie believes that the ‘potential gains far outweighs the risks’.
Lee also states that he feels comfortable representing LF making the deal with TokenPay as he has seen the CEO’s sincerity and the real desire to increase cryptocurrency adoption during an interaction. He further adds that he does not like ICOs, as most of them are scams and do not have a proper incentives structure, however, TokenPay used the funds as they had promised and this acquisition is a part of that promise.
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