Charlie Lee has been making multiple statements recently about the future of Litecoin, namely with the upcoming halving coming mid August.
As the CEO of Litecoin, he says he’s sold all his Litecoin due to the way he holds influence on the cost of Litecoin and didn’t want to be held responsible. His foundation also commissioned @helloluis on Twitter or u/helloluis on Reddit to make this really cool design for their upcoming Halving, the T-shirts are now available for purchase.
Charlie Lee believes that the whole market is in for a tumble and things won’t get any better. Especially for Litecoin, in August the halving could doom miners, as the LTC block rewards being cut in half could send the entire crypto market in a downwards spiral. Miners might not be able to recoup their costs on mining and might simply stop committing their computing hardware for such low returns.
This could change if the value of Litecoin goes up, which is something else Charlie Lee believes is unlikely, some experts going as far as to say the price dropping from over $120 last week all the way to $50.
While there might be considerable FOMO as a result of the upcoming halving, Charlie Lee doesn’t believe it is justified at all, investors should always consider the market prices in events that are certain to happen. Markets, in general, tend to trade one year forward to current expectations. Assuming this, it should be clear that the halving is already priced in from a rational investors perspective. However, the lack of maturity and growing excitement make it almost impossible for investors to keep a level head, making rash decisions.
This could just be the ramblings of a mad man, but Charlie Lee can’t yet be classified as one, so listening to his advice might be the safest bet. But so is simply not entering the cryptocurrency market, at the end of the day making your own decisions and conclusions is the best bet for your investment decisions. The cryptocurrency market is always a volatile place and people are often wrong with their predictions.