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Litecoin [LTC] community’s comeback to Multicoin Capital’s hit piece

Laira Rebecca



Litecoin [LTC] community's comeback to Multicoin Capital's hit piece
Source: Unspalsh

A recent research publication called ‘Debunking Market Narratives: Litecoin Edition’ by Multicoin Capital’s Managing Partner Tushar Jain explained the prominent reasons why Litecoin [LTC] will hit the bear trap in future. Multicoin Capital is a cryptocurrency investment firm that offers investors venture capital economics with public market liquidity.

Kyle Samani, the Co-Founder and Managing Partner at Multicoin Capital recently tweeted:

“In Multicoin’s latest post, we debunk many of the narratives behind @litecoin $LTC TLDR: When LTC was founded, it justified its existence as a way to experiment. Today, all those questions have been answered, and LTC is functionally useless”

The document released by Multicoin Capital has briefly explained 4 distinctive narratives of Litecoin which included Litecoin as a Medium of Exchange [MoE], Litecoin as a Store of Value [SoV], Bitcoin’s Testnet and Long term viability. Followed by this, it explained the downfall of LTC’s price since 2017 and some of the negative catalysts that can affect Litecoin in the future.

The news has been circulating around the cryptocurrency community for quite a while. However, the Litecoin supporters strongly refuted the arguments by Multicoin Capital on Reddit and Twitter.

A Redditor named jessquit says:

“It appears the authors are extremely bullish on Lightning Network and seem to believe that with Segwit, BTC’s onchain capacity woes are solved. I wonder if they understand that even with full Segwit adoption BTC can only onboard a handful of new users per second to LN and is still woefully bottlenecked? It appears that in their attempt to “debunk” one narrative they have “rebunked” another narrative.”

Also, it is worth noticing that Multicoin Capital has mentioned in the same article that they hold a short position in LTC. Speculations have ensued among the LTC community that this is an attempt to bring the cryptocurrency’s value down.

A Litecoin enthusiast named ecurrencyhodler on responded to Kyle Samani’s tweet:

“If you want to short #Litecoin, short $LTC. You are your own person. Your investment cryptofund can do whatever you want. But I hope that those who have trusted you with their $$ take notice of this thread because what it shows is an alarming lack of research.”

A LTCproponent named Tom Gnojowy replied:

“FUD from @KyleSamani = $LTC bounce incoming.”

Savio Volpe, another Twitter user says:

“What’s with this campaign against $LTC. Your buddy @TusharJain_ made the exact same post a couple of weeks ago saying LTC is worth 0, a clearly biased partisan dogmatic one-sided position. I’m a critic of LTC too but let’s at least be objective.”

ecurrencyhodler has gone ahead and countered most of the points mentioned in Tushar Jain’s document. While explaining about ‘Litecoin as Bitcoin’s Testnet’, Multicoin’s analysis stated:

“While this may be valuable for Bitcoin, citing this as a reason for billions of dollars of value retention is simply nonsensical. Bitcoin simply does not need a separate $3B testnet.”

According to ecurrencyhodler, the above statement is “ununiformed”, and one of the main reasons why RSK, a popular smart contract platform is adopting LTC is to push drivechains onto BTC, in a very similar way that SegWit was.

Also, the article mentioned the success of Bitcoin’s Lightning Network as a negative catalyst for Litecoin. To this, ecurrencyhodler commented:

“Yes the LN will help BTC scale. Actually I think it’s hilarious your using this against $LTC considering you weren’t even convinced this was a viable option before. Either way, LTC will be a cheaper on-ramp to the LN”

A Software Engineer from Nvidia, says:

“LTC probably has a role to play interoperating over the lightning network.”

Further, the investing firm accused Litecoin of not setting up a differentiated roadmap. However, the Litecoin community considers this as an asset for the blockchain. The LTC proponent says, the fact that people want to outcompete BTC is why they lose (e.g. $BCH). We just want to compliment it.

The Twitterati continued by mentioning some of the prominent exchanges and blockchain organizations which support Litecoin. This included Abra, Lightning Labs, RSK etc. Additionally, these organizations are adding LTC organically and the Litecoin community ‘does not pay anyone to do it’.

A cryptocurrency enthusiast named dylan koji-cheslin says:

“LTC has cheaper transactions and faster transaction times than Bitcoin. Those could be considered functional uses. I don’t own any and this is not a recommendation for or against price speculation on any coin.”

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Laira is a full-time writer at AMBCrypto. She is a Computer Science graduate and she has about 1-year experience in writing. Her enthusiasm and keen interest in developing her knowledge about blockchain and cryptocurrency led her to be a part of AMBCrypto. She currently does not hold any value in cryptocurrency or its projects.



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