The Litecoin cash scam explained. Is it a scam or just a clever “make some money system” as a result of the open source principles?
Why should you fork a system that is working very well?
Litecoin works very well and was the first fork from bitcoin. The Litecoin objective was to create a Cryptocurrency that is faster and having more coins. The model used for Bitcoin versus Litecoin is the Gold / Silver but then simplified. Charlie Lee used this principle from the historic money system Gold / Silver. The historic Gold / Silver ratio was 1 / 15. In the principles of Litecoin thee is a ratio of 1 to 4. For every Bitcoin there are 4 Litecoins.
Forking to make money
A fork is an easy way to make money and create an almost free (without effort) user base (users that own the coin without trading or buying). Just hard fork it ! Users have to claim their coins.
Forking is the easiest way of making money. If you have a good backing and PR you will be successful. Bitcoin Cash is an example of this successful hard fork. But Roger Ver had a lot of backing (miners, exchanges) and he showed a large personal PR.
Review of Litecoin cash scam explained
FIRST: If we look at the team on the website, just 4 persons (one PR person, a 3 developers without a name that can be verified in the community).
Why going back to the SHA256 Proof of Work when there is a lot of discussion about this hashing method? Litecoin uses scrypt.
SECOND: If you look at the registration date of the domain, it is clear it seems a fast and ad hoc approach. This can not be taken serious. Of coarse the existing users of Litecoin encourage a little extra cash. It seems like phishing.
THIRD: If the website is analyzed further, the wallets are not there. The feeling is not right and this is a crypto hijack phishing attack. A hijack because they do not add value, they steal the existing owners of Litecoin and promise a 10:1 ration in the new currency. It is a phishing attack because they phish for users to claim their coin.
FOURTH: Charlie Lee calls it a scam.
FIFTH: Github activity is almost empty.
SIXTH: It is easy to get a coin listed on a no name exchange by paying a fee (https://yobit.net/en/)
SEVENTH: Confusion. LCC is a name used earlier. There is still a confusion about the name LCC, When looking into the past, there is a ICO called LiteConnect (using LCC). If it links to Bitconnect, you are toast! Another name that pops up is Litecoin Classic.
Some motives to create a scam
There are a lot of motives for a fork scam, a few mentioned are:
- Less known exchanges can initiate a fork to attract new subscribers (and also get the funds because people want to access their forked coins).
- Miners can initiate a fork to use their hashing power to mine coins that are more profitable.
- Group of people working together: Buying crypto in advance before announcement that a specific coin will be forked and then selling both coins (to verify pump of Litecoin before announcement).
After the Litecoin cash fork
The price of one LCC (Litecoin cash) spiked to almost 10 US$ on yobit.net
The question that remains: How to get your free coins without doing complicated things like moving coins, downloading a wallet, entering private keys etc. ?
The best advise is: Wait until Wallets are out that support Litecoin Cash. If major exchanges are rewarding the Litecoin owners, that is a good sign.
Additional information and links
Additional information about hard forks similar to that of mentioned in this article: ” Litecoin cash scam explained” can be found on Fortune:
Unless otherwise proven, this fork is considered a Litecoin cash scam. But keep in mind: Although it is not officially called a scam. Bitconnect on the other hand was a real scam. Forking an open-source system is 100% legal. The name Litecoin is not protected.
The Litecoin cash fork is piggy backing on the successful hard fork from Bitcoin by Bitcoin Cash. To understand the fork, you have to find the motives.
In this article: Litecoin cash scam explained we are still waiting for information that this fork is really accepted or is it just a hard fork scam?