Crypto Hedge Fund Says "Short Litecoin"
A cryptocurrency hedge fund says they are short litecoin, and you should be too.
Multicoin is a cryptocurrency focused hedge fund that fails to see the need for litecoin, at least at these prices, in the cryptocurrency universe.
They went ahead and laid out a multitude of reasons why they think that in their new report here:
https://multicoin.capital/2018/09/14/debunking-market-narratives-litecoin-ltc-edition/
The report was written by managing partner Tushar Jain.
Why exactly do they think that?
I won't go into all the details as to why they think litecoin is a good short, but I'll give you the brief overview.
By the way if you do want all the specifs feel free to read the report I linked above or check this out:
https://www.ccn.com/litecoin-a-significantly-overvalued-relic-cryptocurrency-hedge-fund-claims/
Basically, their main thesis is that there is no real need for litecoin going forward.
When it was originally created it was supposed to be the payment coin while bitcoin was the store of value coin.
Bitcoin could be digital gold and litecoin could be used for every day transactions, that was the theory at first.
However, now that the technology around cryptocurrency as a means of payment has drastically been improved upon by smart contracts (among other things), litecoin finds itself in a very strange spot.
It is too slow and too expensive, not to mention it wouldn't really scale, to be used as a primary means of exchange.
It is also not likely to be seen as a very good store of value when you have its older brother bitcoin doing that quite well itself.
What exactly is litecoin good for?
That is the entire thesis behind Multicoin's bear case.
Some other minor points were that litecoin benefited from being one of the few coins listed on Coinbase as well as riding the entire asset class wave up in early January.
Things that are not likely to put a bid under the price of litecon any longer.
While some say litecoin at $50 is cheap, Multicoin says short it now, today, and you will make money.
(Source: https://www.ccn.com/litecoin-a-significantly-overvalued-relic-cryptocurrency-hedge-fund-claims/)
Short and distort?
By the way, isn't it a great world we live in where we can bet against something and then spread all kinds of negative info and news about said thing hoping to get others to go along with our trade as well?!
I am not sure about you, but to me that sounds like the very definition of market manipulation.
I guess when you do it to drive crypto prices down it is ok, but when you do it to drive them up, it is not ok.
I think I understand now.
(Sarcasm font on)
Stay informed my friends.
Image Source:
https://www.ccn.com/litecoin-a-significantly-overvalued-relic-cryptocurrency-hedge-fund-claims/
Follow me: @jrcornel
Steem or Nano is better form of every transaction curency given its feeless nature.
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Correct. Plus it is much faster and it scales significantly better.
I agree! I still think Litecoin will have it's place among the top cryptos though
Why do you think that?
I think with the Litecoin Foundation's 9.9% investment in WEG Bank AG earlier this summer they are positioning the currency to be a strong competitor in the re-configured blockchain based banking industry. Most people in crypto want the banks to disappear but I see them as a necessary partner to help bridge the gap between those of us who are not scared of this thing called crypto currency and those who are.
This crypto space is nothing vlose with rational as always. What is better in term of tech doesn't always reflect on the price. While LTC maybe lag behind those feeless coins, it has its own advantages as well.
Yes that is true, for now. It won't always be that way and I would bet it is going to change very soon to be honest. Big money doesn't stay dumb for very long.
Steem is honestly quite revolutionary.
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it is a better coin compare LTC..
It is news like this that will keep crypto from going legit into the mainstream of investments
😩😩😩😩😩😩
Why is that?
Bad news! Litecoin is a quality product.
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I actually somewhat agree with them. I am failing to see how exactly it fits going forward.
Just a mere copy of LTC, launched as a joke DOGE survived and is flourishing due to strong community. STEEM on the other hand not only a top notch cryptocurrency by developments and technology, it is building strong HODLers community. In near future it will definitely rank above DOGE and LTC as @jrcornel stated "Big money doesn't stay dumb for very long."
This is the sort of news that comes out when a bottom is close... I think its too late to call something overvalued as Litecoin has come down from almost $400 to $50. While they have considered real factors that can impact Litecoin, the same can be said about many other cryptocurrencies. However, I think Litecoin is one of the fee that have a well distributed community of developers (and foundation) that are actively seeking ways to improve adoption. I still visualize Litecoin as a better asset to use for exchange/payments that bitcoin and its still cheaper. However, if we get increased transactions in BTC like we recently saw in ETH, Litecoin will still be better.
Only if bitcoin stays in its current form. However, that likely will not be the case. At some point in the future, bitcoin will still be a very good store of value, plus it will be used for payments with upgrades such as the lightning network. Not sure where litecoin fits in that world. If you are a one trick pony, like is the case with litecoin, you better be the best and litecoin isn't anywhere near the best now that smart contracts are around.
I actually agree too.
Litecoin isn’t the best at what it does and will likely die a slow death. Crypto with feeless transactions will win out for payments in the end and as Bitcoin gets faster/cheaper, it’s status as the store of value king will remain.
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Yep, my thoughts as well. Well said.
Litecoin is an awkward position indeed, however it will still benefit from being one of the more prominent projects. I can't see institutions investing heavily outside of the top 10 projects by marketcap tbh, not while the industry is still so young.
Well currently they aren't investing at all. When they do, it will just be bitcoin to begin with. Aside from them, there are hedge funds and VC funds that will look for real projects that have real potential. Litecoin won't get money from either groups.
The function of litecoin is being a backup for bitcoin. If digital gold fails, digital silver steps in. That's one of the advantages of currency competition. But I agree there are better coins out there. Personally I'm a big fan of DAG coins (minus IOTA), but for some reason they have trouble getting adopted.
Wouldn't BCH be the backup for bitcoin at this point? Either way, if bitcoin were to fail I highly doubt another POW coin would take it's place. If bitcoin fails, all the POW coins in their form would likely fail as well.
Litecoin has its place and thats not changing. The lows have basically been hit so I would not short litecoin or any of the top coins at these prices.
Why is that not changing?