For those who aren’t yet aware, there is a Litecoin fork (first ever) that’s supposed to occur on the 18th or 19th of this month, just a few days away.
Supposedly you can receive 10 Litecoin Cash (LCC) for each LTC you possess at the time of the fork. This has caused much speculation and has people scrambling to buy LTC prior to the fork.
On the LTC chart, you can see that it just had a major breakout higher and has shot back above $200/coin:
As you can see on that chart, the downtrend has clearly been broken to the upside, it is a very bullish chart.
Note how similarly to BTC, LTC touched the 200 day moving average and has bounced producing a new buy signal on the daily MACD.
But is LCC a scam or is it legit?
According to Litecoin Founder, Charlie Lee, it is a SCAM. Here are his recent tweets on the subject:
PSA: The Litecoin team and I are not forking Litecoin. Any forks that you hear about is a scam trying to confuse you to think it’s related to Litecoin. Don’t fall for it and definitely don’t enter your private keys or seed into their website or client. Be careful out there! https://t.co/qXbiIxp5Al
— Charlie Lee [LTC] (@SatoshiLite) February 4, 2018
Since on the topic of scams, any fork of Litecoin, calling itself Litecoin something or other, is a scam IMO. Litecoin Cash, Litecoin Plus, Litecoin *… all scams trying to confuse users into thinking they are Litecoin.
This also applies to all Bitcoin forks trying to confuse.
— Charlie Lee [LTC] (@SatoshiLite) January 30, 2018
Clearly, Charlie believes it to be a scam. In fact, he like many others, believe people doing these forks and using the Litecoin or Bitcoin names are inherently weak for trying to piggyback on the name and not doing their own coding and marketing. I agree with this philosophically.
Most forks piggyback not only on the name, but they use the open source Bitcoin code – in fact that’s exactly what Charlie Lee did, he copied the BTC code, made a few changes, changed the name, and has made millions off it. Okay, that’s the way open source is, and the BTC source code is far and away the most proven and secure.
Now, when I go to the LCC official website, I find that they list many benefits, including the fact that old BTC mining software will be able to mine LCC.
Their website is respectful and seems to be looking after people’s interest with their “safe fork” discussion. However, there is no whitepaper and the team is very young and thin with only 4 members.
From the LLC website, here is an LCC comparison table:
Note that Charlie Lee says not to give them your LTC keys in order to claim your LCC. I would agree, at least at a minimum I would wait to see if in fact people are successfully claiming them, and that an LCC wallet actually materializes.
Regarding this, the LCC team seems to agree by stating a truism, “Firstly, NEVER paste private keys that hold any currency into ANY website or wallet in order to claim forked coins (including ours). Practice responsible forking: 1. Wait for the fork; 2. Move your Litecoin to a new address; 3. Use the private key for the “old” address to claim your Litecoin Cash.”
One thing is for certain, with Charlie Lee at Coinbase, don’t expect Coinbase to distribute LCC to your account automatically! Thus if you wish to claim your LCC, you must ensure that you have your LTC in your possession, inside your own LTC wallet off any exchange (I use Trezor). Then move the LTC to another wallet or an exchange, then use the old and now empty wallet keys to claim your LCC.
So, I do think there is a high probability that this is a scam, at a minimum it is a fast and loose copy/modification of the LTC/BTC source code. That said, I do have my LTC off exchange and will be able to claim my LCC once proven. I will wait and watch before attempting to claim my LCC tokens. If I am successful, I will immediately sell them since there is no whitepaper, and since the “team” looks to be profiting with minimal effort on their part. Then I’ll use the proceeds of that sale to purchase LTC.