One of the most important cryptocurrencies in the market, Litecoin, is going to be part of Abra’s new portfolio-wallet. Abra Global has decided to launch the product using Litecoin’s network after researching and investigating with other cryptocurrencies.
Abra Global Works with Litecoin
On a blog post released by Abra Global, the company explains that they have launched a new smartphone app and exchange service that enables investing in 20 cryptocurrencies and 50 fiat currencies. At the same time, they offer a real-time exchange across 70 currencies.
The blog post reads as follows:
“Abra has developed a unique multi-sig smart contract-based investment platform that allows us to create synthetic digital assets (e.g. stablecoins) based on Litecoin or Bitcoin. […] We are now extending this technology to create synthetic digital assets that includes other cryptocurrencies. In other words, Abra gives you investment exposure to cryptocurrencies or fiat currencies without actually holding the physical currency.”
Abra explains that they use a similar system as used by ETF contracts based on the US dollar. The difference is that instead of using USD, the company uses Litecoin and Bitcoin with Abra acting as the counterparty to the P2SH scripts.
Litecoin has been chosen as the primary asset class for the investment platform because it is secure, safe and scalable on chain and off chain.
“We chose Litecoin after a long a thorough research process to determine the asset class that met our criterion: secure, safe, scalable on-chain and off-chain, low mining fees, and preferably with adherence to the published Bitcoin core roadmap,” explains the article. “We believe that Bitcoin will always be slightly more secure than Litecoin due mainly to its smaller block size – many refer to Litecoin as digital silver vs Bitcoin’s digital gold. But this small security trade-off means lower mining fees and ore on chain scaling for our users.”
Charlie Lee Repercussion
Litecoin’s founder, Charlie Lee, has been commenting on social media about this important development for the Litecoin community.
He wrote on Twitter:
“Abra Global has chosen to launch its newest product on the Litecoin network after a long and thorough research. Abra lets you invest in all sorts of cryptocurrencies all hedged with smart contracts on Litecoin!”
After the news, Litecoin did not seem to feel the good news from Abra. At the moment of writing the article, Litecoin is being traded around $160 dollars and its market capitalization is slightly under $9 billion dollars.
According to Charlie Lee, there will be two important announcements during the year for Litecoin. One is related to a popular online wallet and the other is related to a goods trading platform.