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Litecoin price may be affected due to a broke Litecoin Foundation?

litecoin price affected due to broke litecoin foudnation

Litecoin price is currently standing at a dwindling fifty-five dollars ($55.86) while in the past thirty days, Litecoin price is down by over sixty-eight percent (68.75%) since the price on 18th of September 2019.

litecoin price chart - 12 october 2019

Litecoin price chart by Trading View

While the Litecoin price hit the lowest point on the 26th of September at fifty-one dollars ($51) mark it also hit sixty dollars ($60) mark on the 9th of October. However, all said and done Litecoin price is failing to find support. It is currently trading in the worst conditions since the Litecoin halving event.

While on the other hand, the Litecoin Foundation (LF) has almost run out of money. This year, LF is down to seventy thousand dollars ($70,000) in a negative, from its last year’s income of more than a million dollars ($1,000,000).

Litecoin price may be affected?

LF’s one million dollar income was from a donation of eight hundred and thirty thousand dollars ($830,000), and a total income from merchandise sales which amounted to around two hundred thousand dollars ($200,000).

Supposedly, the merchandise sales refer to the sale of shirts with hodl printed on them, and revenue from the Litecoin Summit.

LF lost eighty thousand dollars ($80,000) on merchandise which originally cost two hundred and eighty thousand dollars ($280,000) but sold for two hundred thousand dollars (200,000).

The founder of Litecoin, Charlie Lee has stated that the foundation has estimated its runway to stretch over a period of one to two years, subjective upon the Litecoin Summit’s finances. He added that currently, LF has around two hundred thousand dollars ($200,000).

LF spends one hundred and thirty-seven thousand dollars ($137,000) on staff, thirty-six thousand dollars ($36,000) on its marketing, over twenty-four thousand dollars ($24,500) on legal charges, and over four thousand dollars ($4,500) on its advertising. The net value doesn’t support the foundation’s claims of it having a two-year-long runway.

LF also has a deal with TokenPay and WEG Bank that cost the foundation over two million dollars ($2.8M).

Last year, the foundation acquired ten percent (10%) of WEG Bank, with a choice to get another eighty percent (80%). This option may have cost them over two million dollars (2.8M).

LF is currently spending one thousand and five hundred dollars ($1,500) on cloud and software services. This may only be the cost of the foundation’s website, and this does not include any development cost or charges.

This may be since the foundation doesn’t possess any. Charlie Lee sold all of his Litecoin in Q4 2017, making himself a millionaire.

Saad B. Murtaza

Saad B. Murtaza

Journalist, Writer, Editor, Researcher, and Strategist with over 10 years of experience in the digital, print and public relations industries, Saad has been working with the mantra, Creativity, Quality and Punctuality. In his waning years promises to build a self-sustaining institute that provides free education. Carrying a diverse portfolio he has studied and written on topics related to cyber crimes, scams, blockchain, and cryptocurrencies.

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