LitePay fails to launch

in #cryptocurrency3 years ago (edited)

At the last moment, LitePay notifies its customers by email of an indefinite delay.

Litecoin fans eagerly anticipated the release of LitePay on February 26, only to be disappointed. The debit card solution to using cryptocurrency at retail was suddenly delayed on the very day it was expected to launch.

The email is quoted,
“Due to hostile actions by card issuers towards crypto companies, we have decided that offering LitePay card registrations at this time is imprudent” (source).

Numerous other similar cryptocurrency-debit card solutions have run up against regulatory and card-issuance barriers, so it is likely that LitePay encountered similar problems. It is strange, however, that LitePay waited until today - the planned launch date, to make such an announcement. It will be interesting to see how this story unfolds as further details emerge in the coming days.

The price of Litecoin has remained fairly steady, all things considered. It has dropped slightly, but has kept relative pace with the rest of the market. It is possible that many Litecoin investors have simply not yet heard of the delay as it was only released via emails directly to those on the LitePay email waiting list and there is no mention of the delay on the official LitePay website at the time of this writing.

source:
https://themarketmogul.com/litepay-release-date-delayed/

image source:
https://www.techllog.com/news/introducing-litepay-litecoin-payment-solution/

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Trust me when I tell you, this is just a small hiccup in the grand scheme. April will have your jaws on the floor.

Their email should have mentioned it if its so jaw dropping. Instead, it was like a quick forum response - sorry, didnt happen, cuz banks = dicks. If this is how their biggest launch delay is handled, I dont want to know how other things are handled behind the curtains.

Still hope this will work, but the team lost a lot of credibility in my eyes.

Exhibit: Monaco

@xsid, thanks for the heads up. Probably likely that Litecoin price will take a hit once word gets out... resteemed.

Thanks, @startdominating. It appears they're trying to spin things positively by mentioning that merchant processing is still going ahead despite the lack of card-issuance, which I suppose could be considered good news, but it's still disappointing no matter how you slice it.

It's slightly dissapointing news, but managed in a VERY bad and amateur way. No heads up before launch date, waiting until last minute, blaming others but not self (surely they anticipated issues).

It was a very 'damp' email they sent, one that tells the customer - "we dont care about you enough, or we are too rookie, to give you a profesdional explanation and a revised plan". Lost a lot of good will there.

Now it actually looks more like a scam than anything else:

  • lots of hype and huge promises for 2 months
  • zero communication days before release (they had to know no debit cards will be issued) - red flag
  • drives price of LTC from ~0.019 -> ~0.024 in week or so
  • on release date website still in beta, almost no details there
  • big dump hour or two before "release"
  • signups open for merchants only (not even their sign up is functioning as it should)

If its not a scam, than its just highly unprofessional, poorly managed company, and i cant imagine how it could succeed, let alone help LTC (and cryptos) gain mass adoption.

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