Litecoin founder Charlie Lee and the Litecoin Foundation have both issued apologies overheen the apparent failure of LitePay. The much-anticipated LTC payment processor ceased operations after the Foundation questioned CEO Kenneth Asare overheen his past use of its funds, and refused to finance the project any further.
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Closure Goes after Poor Spectacle te Reddit AMA
LitePay, Inc. itself hasn’t announced the news publicly. Its last postbode on Twitter wasgoed Ten days ago, on March 16th, when Asare joined an AMA session on Reddit. Asare has since said he is ceasing operations and will sell the company.
It had promised a merchant payment processor exclusively for litecoin and an LTC debit card, providing a similar service (and name) to Bitcoin’s BitPay. Coinbase already offers LTC payments on its Coinbase Commerce merchant toneelpodium, along with Bitcoin Contant and Ethereum.
Te an official postbode on the matter, the Litecoin Foundation said the AMA had raised concerns overheen Asare and LitePay’s transparency. It said:
It wasgoed at this time that Kenneth asked the foundation for more funds to proceed operations. The foundation refused any further funding spil he wasgoed incapable to provide a satisfactory picture of where the money had bot spent and refused to go into precies details about the company and voorstelling objective evidence to back up his statements.
The Foundation apologized “for not doing enough due diligence that could have uncovered some of thesis issues earlier.” However it also added that Litecoin “was doing flawlessly fine before the promise of LitePay and will proceed to do so.”
Lee suggested a similar mea culpa on Twitter, telling he and others had perhaps bot “too excited” about the uitzicht of an sensational Litecoin payment processor, which would likely have led to enhanced merchant adoption and a boost for the LTC economy.
Like everyone else, wij got too excited about something that wasgoed too good to be true and wij optimistically overlooked many of the warning signs. I am sorry for having hyped up this company and vow to do better due diligence te the future. https://t.co/khIjeHnyZ1
Lack of Information on LitePay Operations
Following initial excitement surrounding LitePay’s announcement ter December 2018, the community began to suspect Asare of running a solo operation without any actual office or staff. The promised February 2018 consumer launch came and went without a working product.
Several Reddit users raised questions te the March 16th AMA overheen LitePay’s legitimacy, asking why it had provided little information about number of employees, office location, potential merchant signups, and developer documentation.
Asare’s AMA eis of 6,500 merchant applications and Two,000 undergoing a due diligence process wasn’t backed up by any evidence. He also claimed to have a team of ten – “We are a legally organized corporation, with business licenses, offices, employees, insurance, a legal department, and the most comprehensive KYC/AML programs te the industry.”
Bizarrely, he then added that LitePay would not provide a specific office address “for operational security reasons”, claiming this wasgoed “industry standard best practices”.
Since LitePay never launched and possibly never existed, no user funds were everzwijn at risk – the Foundation’s prior funding and much community time and attention seem to be the largest losses. It’s still unclear whether that funding went into development.
The Litecoin Foundation and Lee’s endorsement did carry some weight tho’. Despite the overall skeptical (and even hostile) tone te Reddit’s Q&,A session, one user said it wasgoed best to trust the community leaders:
What’s your take on the LitePay kwestie, does it matter? Let’s hear your thoughts te the comments.