It has been just a few days since the litecoin blockchain was forked, and so far, litecoin cash (LCC) has failed to make much of a splash. It appears that the offshoot of the popular digital currency has yet to draw in a following.
After a small spike in price late in the week, at which point litecoin cash climbed above $7 per token, the new cryptocurrency fell to around $3 over the weekend. This means that litecoin cash is just a tiny percentage of the value of the official litecoin project.
A report by Coindesk explores the first few days of the new cryptocurrency’s existence and attempts to explain why investors have yet to take particular interest in LCC so far.
Notable Start, Followed By Lackluster Prices
Litecoin cash was valued at close to $1.40 and surged all the way up to an all-time high of $9.25 on February 20, shortly after it launched. This constituted a leap of nearly six times. Even by the standards of extreme volatility which are hallmarks of the cryptocurrency space, this represents an impressive start for the new token.
Litecoin itself also benefited from the fork and the quick gains for LCC, as litecoin’s value climbed while investors secured their holdings on the fifth-largest digital currency in the world in an effort to secure more litecoin cash at the time of the fork.
Following this impressive beginning, though, LCC has sputtered. Perhaps one reason is the seamless forking experience. In other high-profile forks, such as those for bitcoin, there has been dramatic and prolonged discussion among different factions in the debate. This has served, among other things, to publicize the proceedings and make the crypto investment community aware of the fork itself.
Litecoin’s fork went very smoothly in comparison, with relatively little discussion. As a result, it’s possible that many investors were simply unaware of the fork and the generation of litecoin cash in the first place.
Exchanges Sluggish to Adopt
Another possible reason why litecoin cash has been slow to catch on is that no major exchange has yet announced its support for the new token. Early on, LCC was listed only on YoBit. The litecoin cash website indicated the availability of LCC on exchanges like Trade Satoshi and Mercatox before either of those exchanges actually offered the new token. (See also: What Is Litecoin And How Does It Work?)
Finally, the name of the project may also be a drawback. Litecoin’s creator, Charlie Lee, even spoke out about the decision to call the token “litecoin cash,” saying that it was reminiscent of the polarizing bitcoin cash fork.
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