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LiteCoin Foundation Apologizes After the Closure of LitePay

The Litecoin Foundation on Monday issued a statement informing the public about the closure of LitePay which was being touted to be a potential merchant solution that would work the same as Bitpay. In the statement, Litecoin director of operations apologized for not doing thorough due diligence before promoting the company. The statement addressed to the entire Litecoin community stated:

"We are greatly disheartened that this saga has ended this way,”

says Keith Yong, Litecoin’s director of operations.

"We are Greatly Disheartened" - Closure of LitePay

Lack of transparency in LitePay

The statement sites lack of transparency as the key issue behind the termination of LitePay project. Cointelegraph reports that Litecoin foundation had recently refused LitePay Ceo Kenneth Asare’s request for extra funding citing lack of transparency and explanation on how the previous funding was used. The problems associated with LitePay came to the limelight during ‘ask me anything’ session by Asare on 16th March, where he was unable to offer precise and conclusive answers on many questions about the company’s documentation.

Majority of Reddit users claimed that LitePay was a scam and accused Litecoin foundation for promoting it knowing that it was meant to defraud innocent people. One of the Reddit users brought forth that the privacy policy being used by LitePay was a copy and paste from Coinbase only replacing the word ‘Coinbase’ with ‘LitePay’.

Assuring the Litecoin community

Litecoin operations director has assured the Litecoin community that the recent developments will not affect the value of Litecoin in the market. Through the statement, the director urged the Litecoin community not to panic and the foundation is tightening its due diligence practices to avoid such mistakes in the future. The director says that Litecoin was doing well even before the emergence of LitePay and will still continue with the trend.

"Litecoin was doing perfectly fine before the promise of LitePay and will continue to do so. The 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,”

Said the Litecoin operations Director.

It is no doubt that the prospects of LitePay had a positive impact on Litecoin. In mid-February, Litecoin’s value increased by more than 30 percent following LitePay’s announcement that they were releasing a merchant services later in the end of February, a promise they failed to uphold.

 

 

Following the release of the statement about the closure of LitePay, Litecoin’s value has continued to dip since Monday. However, majority of the top coins have been going down in major coin exchanges in the world. It is yet to be established whether the closure of LitePay will have any major effects on the value of Litecoin now and in the future but keep it here as we will surely monitor its performance for you.

Do you think the closure of LitePay will negatively affect the performance of Litecoin in the market? Share your thoughts with us in the comment section.