Today, an announcement from the Litecoin Foundation stated that LitePay CEO Kenneth Asara ceased all operations and intends to sell the company. Now, investors are left wondering what this means for the future of Litecoin, and how the market will react to this announcement.
CEO exit marks the end of the LitePay saga
With the announcement, the Litecoin Foundation said that it recently found out from LitePay’s CEO that he ceased operations, effectively marking the end of the LitePay saga.
“We are greatly disheartened that this saga has ended in this way and we apologize for not doing enough due diligence that could have uncovered some of these issues earlier,” the foundation said in the announcement. “We are currently working hard to tighten our due diligence practices and ensure that this does not happen again.”
While Litecoin advocates previously championed the arrival of LitePay, the company’s launch did not go as the community intended. Contrary to the launch that most were expecting in February 2018, LitePay instead opened merchant payment registration, announcing a delay on its plan to open LitePay card registrations.
Further, the Litecoin Foundation stated that it contacted Asara about his “less than transparent nature with the company.” The foundation also said that it refused Asara’s request for more funding in order to continue LitePay, stating that Asara could not provide a satisfactory explanation of how his previous funding was spent.
The Litecoin Foundation chooses to see the bright side
As Litecoin founder Charlie Lee previously explained on Twitter, LitePay is a seperate company that requests funding from the Litecoin Foundation. Generally, the foundation worked with the company to find solutions to several of its pressing issues. With today’s announcement, the Litecoin Foundation is adamant that the news won’t hurt Litecoin or its users.
LitePay is separate company. I don't own or work for LitePay.
— Charlie Lee [LTC] (@SatoshiLite) March 16, 2018
“Litecoin was doing perfectly fine before the promise of LitePay and will continue to do so,” the foundation said. “The ecosystem is far bigger than one company and is continually growing with support from many others with market ready products joining the space and fulfilling their promises to make it easier for the world to use Litecoin.”
Further, the foundation said that it is choosing to see the good in the situation, and will not focus on LitePay’s exit.
“In the end, this is a valuable lesson for us to have learned,” the foundation added. “Litecoin and our community is as strong as it has ever been and we look forward to many great things to come. Thank you for your continuous support!”