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Charlie Lee Sums Up Litecoin’s 10 Years Historical past. Half Two: Exchanges + Betrayal

10/09/2021

The creator of Litecoin, Charlie Lee, continues to information us by reminiscence lane. For half one, he took us by Litecoin’s honest launch. Contemplating the small variety of initiatives which have managed to try this, it was a reasonably large achievement. At present, for half two, we’re going to cowl the mission’s relation with cryptocurrency exchanges. Charlie Lee wears his coronary heart on his sleeve for this one, and tells a heartfelt story that leads to betrayal. Can you are feeling the thrill within the air?

Associated Studying | Charlie Lee Predicts Resurgence of Litecoin as Bitcoin Money Falters

This a part of the story is all about relationships, connections, and the lengthy street to credibility. It’s additionally about Charlie Lee’s resistance and willpower.

Earlier than we get into the meat and potatoes of the story, although, a light-weight element that shouldn’t go unnoticed.

Charlie Lee Offers Flowers To The Litecoin Emblem Creators

There’s not a lot story to the logos, but it surely’s cool that Lee provides credit score the place credit score is due. The primary and the second present evolution:

The second brand was designed by @mjbmetals. I nonetheless like that quite a bit. It appears to be like properly subsequent to that Bitcoin brand.https://t.co/T5hzEldonI pic.twitter.com/Uy5qpl8JUP

— Charlie Lee (@SatoshiLite) October 7, 2021

And the ultimate one is a simplification of the second:

And the present brand is designed by Robbie Coleman (@robertfcoleman) and his staff.

After all being decentralized, there are lots of different logos that individuals have created and used. Some are fairly wacky. And folks can use no matter brand they need and I am unable to do something about it. 😂 pic.twitter.com/M7FgBcGPum

— Charlie Lee (@SatoshiLite) October 7, 2021

That being mentioned, let’s get again to the story.

LTC value chart for 10/09/2021 on Coinbase | Supply: LTC/USD on TradingView.com
Litecoin’s Lengthy Exhausting Highway To Trade Listings

This contradicts the title, however, in 2011 Litecoin was instantly listed within the now-defunct BTC-e. The location was a fairly profitable cryptocurrency trade that fell into shame when the US Justice Division accused them of laundering funds from the Mt. Gox hack, however that’s one other story. Concerning Litecoin, Charlie Lee tells us that the itemizing, “helped lots as miners had entry to liquidity fairly rapidly. Litecoin rapidly grow to be probably the most well-liked coin on BTC-e.”

From 2011 to 2013, I spent quite a lot of time supporting Litecoin’s early progress and pushed for adoption wherever I can. I just about talked to all of the exchanges to help LTC. I noticed that liquidity is tremendous vital for a coin. With out liquidity, you possibly can’t do something.

— Charlie Lee (@SatoshiLite) October 7, 2021

Nonetheless, though Lee “just about talked to all of the exchanges to help LTC,” it was two years later that the second listed Litecoin. Bitfinex took an opportunity on the nascent mission, “This was an enormous deal for Litecoin. It’s the primary main trade to help LTC.”

On the Bitcoin 2013 convention, I bear in mind attending a chat by Bitstamp Co-Founder and CEO Nejc Kodrič( @nejc_kodric). In the course of the Q&A after the discuss, I requested him if Bitstamp will add Litecoin. I feel he simply chuckled and went to the subsequent query.

— Charlie Lee (@SatoshiLite) October 7, 2021

Then, Charlie Lee bear in mind how he tried to get the CEO of Bitstamp to listing them and he ignored him. Solely to listing the coin in 2017. The identical factor occurred with BitPay. That firm ended up supporting Litecoin solely this yr. 

The Chinese language exchanges, although, listed Litecoin from the start. “Someday late 2012 to early 2013, 2 of the most important exchanges in China, Okcoin and Huobi, added help for LTC. That was enormous.” A query arises, did Charlie Lee must throw shade at these two exchanges this tough? “The buying and selling quantity was additionally fairly loopy, however unclear how a lot of that was fabricated.”

In 2013, I assumed it was time for me to step away from Litecoin. I used to be very lucky to search out Warren Togami (@wtogami), Founding father of the Fedora Challenge, to take over as Litecoin lead developer. Warren is wonderful and we have been very fortunate to have him on the helm of improvement.

— Charlie Lee (@SatoshiLite) October 7, 2021

Charlie Lee And Coinbase, A Love Story

So, in 2013 Charlie Lee steps down as Litecoin’s lead developer and leaves the job to Warren Togami. On the identical time, he leaves a high-paying job at Google as a result of they weren’t eager about something crypto-related. That’s when Coinbase will get into the image. Lee contacts them to see in the event that they’re eager about itemizing Litecoin and so they find yourself hiring him as an alternative.

I interviewed at Coinbase and on paper, it gave the impression of a horrible deal. I must commute to SF, which was an hour every means, take a 50% or so pay lower, work twice as onerous, and miss out on all of the Google perks. Nevertheless it was a no brainer for me.

— Charlie Lee (@SatoshiLite) October 8, 2021

In line with Charlie Lee, “Coinbase was the new startup and THE crypto firm that’s making Bitcoin straightforward to make use of. I knew that if Bitcoin didn’t succeed, Litecoin wasn’t going wherever both.” A chilly onerous reality that the entire Altcoins must dwell with to at the present time. Apart from that, Lee needed to finally persuade Coinbase to help Litecoin. How might he not?

However not less than he created a cool banner for it. 😁https://t.co/7BToh7YNdX

After that, there have been rumors of @MtGox lastly including its second coin, Litecoin. On the time MtGox had like 97% of the entire Bitcoin buying and selling quantity. Help of LTC can be enormous for Litecoin’s liquidity. pic.twitter.com/rfBhA7z1Pm

— Charlie Lee (@SatoshiLite) October 8, 2021

The Chinese language connection paid off and the BTC China, lead by Charlie Lee’s brother, listed the coin. “Though it was an enormous information, what took him so lengthy?!,” asks Lee hilariously. Additionally discover that the banner that he mentions performs on the truth that Charlie and Bobby are brothers. 

In 2015, there have been rumors that the notorious Mt. Gox trade was going to listing Litecoin. On the time, this was THE place to be. Charlie Lee lastly confirms the story, “The rumors have been truly true. I used to be speaking to the CEO, Mark Karpelès virtually each day in mid 2015.” Nonetheless, the Mt. Gox hack was uncovered earlier than they materialized these plans. And all hell broke free. “In hindsight, it was a blessing in disguise.”

Then, because it occurs, issues turned bitter within the Charlie Lee and Coinbase romance.

That modified although in 2016. The was when Litecoin commerce quantity exploded on Chinese language exchanges and it was clear to me that Coinbase was leaving some huge cash on the desk by not supporting altcoins. And it made enterprise sense for Coinbase so as to add altcoins.

— Charlie Lee (@SatoshiLite) October 8, 2021

The Brian Armstrong tweet he refers to says: “Ripple, Stellar, and Altcoins are all a distraction. Bitcoin is means too far forward. We needs to be centered on bitcoin and sidechains.” Wow. What would the Brian Armstrong of the current say about that assertion?

Anyway, in 2016 Litecoin’s buying and selling quantity was exploding within the Chinese language exchanges and Charlie Lee noticed his alternative. “This was additionally when Ethereum was beginning to get massive. So I put collectively a proposal to Brian and Fred Ehrsam so as to add each LTC and ETH to Coinbase.” The proposal’s thesis was that, since folks within the US had no straightforward means to purchase, retailer, and commerce these cash, there was “quite a lot of unhappy demand.” And Coinbase might make some huge cash. 

There was quite a lot of unhappy demand. Individuals within the US had no straightforward technique to retailer and commerce these cash. And Coinbase would steal a lion share of the demand if we added the two cash to start out.

Each Brian and Fred like the concept however they crossed out LTC. They simply wish to do ETH.

— Charlie Lee (@SatoshiLite) October 8, 2021

Right here it’s: betrayal. The 2 Coinbase executives broke Charlie Lee’s coronary heart by accepting the proposal, however just for Ethereum. “Though I went together with the plan, it type of rubbed me the flawed means. Litecoin had a a lot greater world commerce quantity on the time and was the #2 coin in marketcap.” A short while later, Lee took three months of Coinbase to deal with his mission.

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Within the subsequent episode, Litecoin’s story intertwines with Bitcoin’s and the controversial Segwit implementation. We’re going to find that Charlie Lee and his staff have been instrumental on this. How? Tune in to search out out. 

 

Featured Picture by Executium on Unsplash – Charts by TradingView