In a press release, the Litecoin Foundation (a global funding organization which regulates Litecoin) released a statement explaining that the LitePay crypto credit card service will cease all functions and operations, and is soon to be sold. This announcement takes place not long after The Litecoin Foundation refused to provide additional funding to LitePay due to the company not explaining where the money was going to and for what reasons.
It is apparent that a considerable factor regarding LitePay’s ceasing of all functions is that there was a lack of transparency. A visit to the LitePay website (which is currently still live) shows just how little technical information there is, either about the development or about who runs the organization. Here is an archive of the homepage should it get shut down. Furthermore, an investigation into the CEO of LitePay, Kenneth Asare, reveals that he has been a prominent figure in one other business which has in fact been suspended by the Franchise Tax Board (FTB).
In the press release, the Litecoin Foundation reminded the community that ‘the [Litecoin] ecosystem is far bigger than one company and is continually growing with support from many others with market-ready products joining the space and fulfilling their promises to make it easier for the world to use Litecoin.’ This could be referring to projects like LitePal and Abra which both allow merchants to accept Litecoin with ease. Both of these services seem to have the support of the Litecoin community— in fact, LitePal has been officially endorsed by Litecoin’s founder Charlie Lee in a former tweet.
The news of LitePay severing ties could damage the Litecoin market considering how every coin has currently been victim to recent drops in price. This could force the market to decline for the next few days or even weeks, depending on how important investors deem the news.
Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.