Looks like mainstream bankers have killed another promising crypto-project. This time it’s Litepay getting the axe.
Litepay has been officially killed off, after VISA and MasterCard both said they will re-classify cryptocurrency purchases on their cards as cash advances, which incur much higher fees.
Hopes were set high after the creator of Litecoin himself, Charlie Lee promoted Litepay as the next big thing for Litecoin.
Unfortunately those hopes were dashed after the company behind Litepay failed to deliver the project on time and the Litecoin Foundation decided to pull the plug on it, due to concerns around transparency and poor communication from Litepay CEO.
Prior to that, the foundation had approached Kenneth regarding his less than transparent nature with the company and to express our, and the community’s, concerns regarding his recent Reddit AMA. It was at this time that Kenneth asked the foundation for more funds to continue operations. The foundation refused any further funding as he was unable to provide a satisfactory picture of where the money had been spent and refused to go into exact details about the company and show objective evidence to back up his statements. – said Litecoin Foundation in their statement to the LTC community.
It looks like due diligence in the crypto world is still very much lacking even at the highest levels. This is certainly a bad news story, not just for Litecoin but for crypto in general, as it makes the ecosystem look incompetent and scammy.
At least the Litecoin Foundation came out relatively quickly with an official statement and Litecoin hasn’t suffered too much despite the current negative market sentiment.