Founder of Litecoin Sells All Of His Coins - And This is a GOOD Thing!
Updated: Dec 22, 2017
You may have read that the founder of Litecoin, Charlie Lee, sold all of his Litecoins on December 19th. It's being reported at a number of outlets including TechCrunch. While many would read the headlines and think that Litecoin now officially has no future, Mr. Lee's divestiture is actually an incredibly good thing for the cryptocurrency economy, and I would like to lead a chorus calling for the founders of other coins to do the same thing.
You may ask why I believe this divestiture will benefit Litecoin. The reasoning is simple, and as follows: while he continued to hold Litecoin, anything that Mr. Lee did to support the currency would have been perceived as being done for personal benefit and no other reason. By donating all of his coins to the Litecoin Foundation (and not cashing in for enormous profit as many headlines would lead one to believe), Mr. Lee has removed any perceived conflict of interest. Make no mistake, by making this move Mr. Lee is going all-in on Litecoin. He will continue his work as a director of the currency and will continue to work with the foundation. The major difference is that now his motivations can not be scrutinized through a microscope.
Mr. Lee is not the only founder of a currency who holds a large position in the currency they founded. Both Roger Ver (Bitcoin Cash) and Vitalik Buterin (Ethereum) hold very large positions in their currencies. I would encourage both of them to either step away from directing the future technology of the currency (Mr. Buterin) or evangelizing for the adoption of the currency (Mr. Ver). This removes even the remote perception of impropriety, and allows these individuals to pat their teams on the back, tweet about prices, and do everything they want to do without the risk that their actions may be seen as increasing or decreasing the price of the currency for personal gain.
A very good write-up is here: