Charlie Lee, the creator of Litecoin [LTC], spoke about the reason why he sold all his coins during the all-time high, in an interview with Laura Shin for Unchained Podcast. He also reasoned why the sell-off should not matter to the cryptocurrency space.
Towards the end of 2017, Charlie Lee announced that he sold/donated all his coins on Coinbase GDAX, citing conflict of interest. This announcement however, drew a lot of negative criticism as some members in the community stated that the creator no longer believed in the success of the coin.
To this, Lee stated that his influence in the cryptocurrency space increased during the course of 2016-2017 because of his contributions to Litecoin and Bitcoin-Segwit, adding that his followers on Twitter “grew exponentially.” During the same timeframe, Lee realized that his opinions had a significant influence on the price of cryptocurrencies, particularly Litecoin. This, in turn, resulted in some people questioning his motives, querying whether his tweet were meant to pump the coin or for its betterment.
The creator of the altcoin stated,
“[…] people were questioning my motives and [I] also kind of felt conflicted because I don’t want people to you think that I’m doing this for the price or for my own benefit right. My goal for everything is for Litecoin to succeed, is for adoption; price doesn’t matter right adoption [does], price would follow adoption […]”
Lee further stated that he finally decided to sell all his Litecoin holdings as he did not want to be distracted by other people questioning the motives behind his actions concerning the development of Litecoin.
This was followed by Shin pointing out that the announcement of the sale coincided with Litecoin hitting its all-time high, adding that the difference between its price then and now was huge. Shin asked Lee how he felt about the idea that he “sold at the top and left others holding the bag.”
To this, Lee stated that the scenario was not “exactly true” as the price of Litecoin continued to rise even after the sell-off, adding that he sold at around $350, while the coin went on to hit the $400 mark. He also stated that some people blamed him for the market crash, adding that it was “sweet,” but in reality, did not “move the market.”
Lee further added that he did not sell huge amounts of the coin as they were not pre-mined, claiming that they were either mined or bought on an exchange. He went on to state,
“[…] I know plenty of people that had a lot more like coins than I did. So, it’s not that unlike people like Vitalik who has a lot of Ethereum or like creators of other coins or ICOs that just hold on to a lot of their own coins, I didn’t have a lot. So selling coins didn’t really affect the market […]”
More so, the creator stated that this was also the main reason for not making a prior announcement. He stated that if the announcement was made before the sell-off, people would’ve been scared of the amount of coins that would’ve been sold.
[…] by announcing that I already sold; didn’t affect the price, there’s no fear that I’m gonna sell more later. so I think that helped but I think one thing I didn’t kind of account for is people are talking about how now that I don’t have like coin anymore I don’t have skin in the game right […]
Lee remarked that it was “so stupid” of people to state that they no longer believed in him due to the sell-off or to think that he had no “skin in the game,” adding that this was against it being a decentralized currency.
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