In a post to Reddit, Charlie Lee, Litecoin cryptocurrency founder and former director of engineering at Coinbase, has stated that he has sold all of his Litecoin holdings, other than a few physical collectibles, and donated the proceeds to charity. This was done to prevent a conflict of interest as he continues to work on and promote Litecoin.
With Litecoin being the 5th largest cryptocurrency with a market cap of approximately 17 billion dollars and its value increasing over 22 times since May, many people felt that Lee was jumping ship while its value was so high.
Lee denies this and stated he sold his coins because it was becoming hard for him to communicate about Litecoin without it being seen as him trying to inflate its value. To avoid these constant concerns of a conflict of interest, Lee has decided to sell his entire stake of bitcoins so that he can freely post about Litecoin in any way he desires.
In the Reddit post, Lee, who goes by the alias of coblee, stated:
Over the past year, I try to stay away from price related tweets, but it’s hard because price is such an important aspect of Litecoin growth. And whenever I tweet about Litecoin price or even just good or bads news, I get accused of doing it for personal benefit. Some people even think I short LTC! So in a sense, it is conflict of interest for me to hold LTC and tweet about it because I have so much influence. I have always refrained from buying/selling LTC before or after my major tweets, but this is something only I know. And there will always be a doubt on whether any of my actions were to further my own personal wealth above the success of Litecoin and crypto-currency in general.
While some are concerned that Lee is no longer going to be involved in Litecoin and thus it may affect its future, Lee assured everyone that he is here to stay and will continue to spend all his time working on Litecoin.
Don’t worry. I’m not quitting Litecoin. I will still spend all my time working on Litecoin. When Litecoin succeeds, I will still be rewarded in lots of different ways, just not directly via ownership of coins. I now believe this is the best way for me to continue to oversee Litecoin’s growth.