On Sunday evening, the Litecoin Cash fork took place, creating a new tradeable cryptocurrency from the Litecoin (LTC) blockchain.
Litecoin Cash (LCC), which started trading at 20:00 GMT at $1.40 has slowly increased in value, reaching a high of $5 at 23:00. Initially, LCC had a trading volume worth $36,161; this has now increased to just over $1m according to cryptocurrency exchange, YoBit.
The fork, which happened when the Litecoin platform reached block 1371111, has been the subject of controversy with some high-profile figures denouncing it as a scam.
Trevor Gerzt, CEO of the cryptocurrency investment fund CoinIRA said Litecoin Cash served little purpose as Litecoin already has fast transaction times, unlike Bitcoin Cash, which helped to speed up Bitcoin’s notoriously slow speeds.
Charlie Lee, who founded Litecoin in 2011, also tweeted following the first announcement that he thought the Litecoin Cash fork was a scam and urged users not to relinquish their private key to secure LCC tokens.
The Litecoin Cash development team said that Litecoin holders would automatically gain ten LCC tokens for every LTC they owned but this required investors to use Litecoin wallets that allowed access to their private keys.
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
Litecoin was the last major cryptocurrency to experience a hard fork from its blockchain platform and at present, is only tradeable on Yobit. Other exchanges Trade Satoshi and Mercatox are also expected to start trade pairs with LCC. Presently the coin is trading at just under $2.80.
Following the announcement of the hard fork the price of Litecoin rose as investors were attracted by the idea of receiving Litecoin Cash tokens through owning LTC. Following the actual hard fork on Sunday, Litecoin’s price fell by nearly $15 from $229 to $215. The coin has since recovered to $225.
LCC, which uses the SHA-256 algorithm instead of Litecoin’s Scrypt, is a Proof of Work (PoW) coin which enables older mining rigs, such as GPUs, to be reused to mine the coin.
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