A cryptocurrency hedge fund says they are short litecoin, and you should be too.
Multicoin is a cryptocurrency focused hedge fund that fails to see the need for litecoin, at least at these prices, in the cryptocurrency universe.
They went ahead and laid out a multitude of reasons why they think that in their new report here:
https://multicoin.capital/2018/09/14/debunking-market-narratives-litecoin-ltc-edition/
The report was written by managing partner Tushar Jain.
Why exactly do they think that?
I won't go into all the details as to why they think litecoin is a good short, but I'll give you the brief overview.
By the way if you do want all the specifs feel free to read the report I linked above or check this out:
https://www.ccn.com/litecoin-a-significantly-overvalued-relic-cryptocurrency-hedge-fund-claims/
Basically, their main thesis is that there is no real need for litecoin going forward.
When it was originally created it was supposed to be the payment coin while bitcoin was the store of value coin.
Bitcoin could be digital gold and litecoin could be used for every day transactions, that was the theory at first.
However, now that the technology around cryptocurrency as a means of payment has drastically been improved upon by smart contracts (among other things), litecoin finds itself in a very strange spot.
It is too slow and too expensive, not to mention it wouldn't really scale, to be used as a primary means of exchange.
It is also not likely to be seen as a very good store of value when you have its older brother bitcoin doing that quite well itself.
What exactly is litecoin good for?
That is the entire thesis behind Multicoin's bear case.
Some other minor points were that litecoin benefited from being one of the few coins listed on Coinbase as well as riding the entire asset class wave up in early January.
Things that are not likely to put a bid under the price of litecon any longer.
While some say litecoin at $50 is cheap, Multicoin says short it now, today, and you will make money.
(Source: https://www.ccn.com/litecoin-a-significantly-overvalued-relic-cryptocurrency-hedge-fund-claims/)
Short and distort?
By the way, isn't it a great world we live in where we can bet against something and then spread all kinds of negative info and news about said thing hoping to get others to go along with our trade as well?!
I am not sure about you, but to me that sounds like the very definition of market manipulation.
I guess when you do it to drive crypto prices down it is ok, but when you do it to drive them up, it is not ok.
I think I understand now.
(Sarcasm font on)
Stay informed my friends.
Image Source:
https://www.ccn.com/litecoin-a-significantly-overvalued-relic-cryptocurrency-hedge-fund-claims/
