Litecoin is known as the silver to bitcoin’s gold. There has been a big decrease in the price of Litecoin that it has decreased from its highest price of $358 to $55. According to cryptocurrency hedge fund Multicoin Capital, it is still over-priced.
There are a variety of different catalysts regarding Multicoin which is known as LTC, according to the Texas based fund and they claim that there is no way to offset them.
We saw a big rally of LTC in 2017. According to the allegations, this rally was because of naivety among retail investors. In addition, the cryptocurrency market was new. The evidence of this is that LTC was the cheapest per-unit asset on Coinbase, which is very popular trading platform around the world.
Multicoin states that the financial situation of the Litecoin foundation is not good to continue running business effectively as the company has only about $322,000 in assets.
Furthermore, the company explains that there is not a definite development roadmap of LTC. For example there is a dearth of LTC GitHub commits. Because of these reasons, several analysts think that it is a red flag to sell all LTC stake that Charlie Lee has.
Multicoin states that although the history of LTC is considerable, its founding vision has been old and it hasn’t been replaced by a new road map. Litecoin is a relic of the crypto market. The reason that they think the current price of LTC is over its value is these outdated narratives. They add that they believe LTC is definitely over-priced with its $50 value. They expect that this price will get lower due to the lack of a viable thesis, nonexistent positive catalysts and strong negative catalysts.
Although Multicoin has a negative point of view about LTC, it is not shared by other cryptocurrency analysts. According to Mati Greenspan, senior market analyst at eToro, the current price of LTC is too low because of its fundamental and technical factors.