Founder of Litecoin sells off all of his supply

Due to recent events such as Bitcoin’s price tanking, Litecoin’s (LTC) founder, Charlie Lee, selling off all of his supply, and Coinbase’s allegations of insider trading, it might make sense that Litecoin has also taken a hit; however, should we fear that Litecoin’s price will also succumb to this nose dive in price for the long term?

The founder of LTC, Charlie Lee, announced on Reddit that he was selling off his full supply of LTC. This reason was not because the founder believes the coin will fail, but because of a conflict of interest. In the statement from Lee, he expressed concerns about his influence and how it carries too much weight for LTC’s price fluctuations.

“…whenever I tweet about Litecoin price or even just good or bad s news, I get accused of doing it for personal benefit. Some people even think I short LTC! So in a sense, it is conflict of interest for me to hold LTC and tweet about it because I have so much influence.”

What Does this Mean for Litecoin?

As expected, the price has drop based on the latest activity that has happened; however, this should not change the fact that LTC is still a strong coin and one of the largest. The creator will now have a unique opportunity to market the coin without receiving accusations of insider trading. What does this mean? More LTC news and more publicity! The creator does not have to hold back from relaying good news related to the coin.

In the short term, LTC is expected to dip below the $300 price level. Taking a look at these charts graciously published by some of the trading view community members:

We can view that among all of the trading signals, most users identify this market as a long. A key target area for LTC is the $300 USD mark. The number of buyers that are willing to purchase at $300 keep enabling the coin’s fluctuation. Fighting for the $295-$300 USD levels seems extremely difficult citing that it’s appears to mostly done by bots.

Risks

As always, there is an associated risk to purchasing LTC. To minimize the risk, I would suggest waiting for the dip below $300 before purchasing the coin. Set the stop loss around $250 and wait for the bullish ride to begin.