Altcoins Crypto Industry

Deep Divisions Over Litecoin Cash Fork

Martin Young | February 14, 2018 | 11:00 am
Litecoin
Altcoins

Deep Divisions Over Litecoin Cash Fork

Martin Young | February 14, 2018 | 11:00 am

When cryptocurrencies fork, their blockchains are not the only things that divide. As was witnessed when Bitcoin Cash forked from the original, the community and developers were also split and still are. A similar thing is occurring with Litecoin and an impending fork is due that its creators are claiming is a scam, and nothing to do with them.

Litecoin founder Charlie Lee has been extremely active lately posting warnings on social media about a forked version that he does not support. Lee’s public outcry comes as a fork for a competing crypto dubbed Litecoin Cash draws nearer.

Forking free-for-all

There is currently nothing to stop anyone making their own cryptocurrency or forking off from an existing blockchain. Countless new iterations of Bitcoin have emerged in the past few months from GOD to DARK. People can get scammed if they don’t do their own research and blindly follow the streams of dross that pollute social media platforms. Governments are anxious to regulate the industry to prevent these sorts of things from happening.

On the surface Litecoin Cash appears to be just another one of these, riding on the name to garner interest. It comes with a plan to increase the block time, enable SHA256 mining, and offer 90% cheaper transaction fees than its parent altcoin. The fork will happen at block 1371111, which is around February 18 or 19. Charlie Lee and the Litecoin team however want nothing to do with it;

Cash with a catch

To win over investors and traders the forkers are offering free LCC tokens for LTC holders at a ratio of ten to one. This is the common method of drumming up support for a newly forked crypto coin. The problem is that to receive the free loot a private key has to be imported to a new Litecoin Cash wallet from an existing Litecoin wallet. This is a very insecure and un-recommended method which has raised the scam flags amongst the Litecoin community.

Additionally the Litecoin Cash team has yet to release a white paper and have not provided a safe way to collect the tokens. At the time of writing it is also unclear whether exchanges will support LCC or dish out the free bounty to LTC holders when the fork occurs.

Michael “Scarlet” Wyszynski, one of the LCC developers told Business Insider;

“As to the name, it’s strictly a product of convention. No confusion is intended, but it has simply become customary for a new coin arising from a fork to use the forked coin’s name as a prefix to its own,”

Either way, Litecoin has reacted to the fork and has finally woken from an almost two month downtrend to trade 24% higher today and head back towards $200.

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  • There should be a system to protect the brand names!
    The original coins are brands already and their names should not be misused!

    • Gimme ThemToes

      Difficult. There are trademarking mechanisms in place that are ignored even now. It may be left to major exchanges to regulate / curtail the trade of impostors.

      • Nothing easy… BUT, if there is a mechanism (and there are laws that regulate this area) that is ignored it does not necessarily mean that the brand name holders should ignore them too. One sharp case and that will become a precedent for all

        • Gimme ThemToes

          Who, exactly, would be liable if an impostor is sued – and how would you serve them with papers? In what jurisdiction? Suing is not effective in a cryptocurrency context –
          unless the exchanges are sued and forced to delist the impostor. Anyone can create a coin, hype it, and cash in. The exchanges are the gatekeepers – at least right now they are.

          • Well, may be that is the case at the moment. Why? May be because no one has tried anything yet in this area, may be no one has defended their brand name until now. I am really curious why?
            See,
            Every coin has an issuer, so if a certain brand name (no matter the industry) will be used without the permission from the brand name owner for the profit making purposes (or any other purpose), this holder can protect his rights. I am not a lawyer, but this is as simple as 123. And the jurisdiction will be found if there is a will.

          • One Nine Elms

            Watch this space as they say !! I think a lot more than is apparent is brewing in the background.

          • One Nine Elms

            I can tell you now 100% that anyone who uses the “Litecoin” name will be ,and can be pursued for damages. Wait and see !!! It is only easy to hide for a certain amount of time and legal claims last a lot longer.

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