This is a correction to a previous article written on our website on the strategic partnership between Litecoin Foundation and TokenPay Swiss AG. The company acquired 9.9% of the WEG Bank AG in Germany this Monday with issuance of crypto debit cards expected soon. The article stated that Litecoin (LTC) was partnering with TokenPay Swiss AG instead of Litecoin Foundation.
Litecoin founder, Charlie Lee offered a clear explanation on what Litecoin and Litecoin Foundation (LF) represent in their capacity. The problem of correct naming goes a long way in ensuring the readers and interested parties get the real story behind the cryptocurrency. Litecoin Foundation is a non-profit company that focuses on the development of the Litecoin blockchain. Litecoin, token symbol LTC, on the other hand is the cryptocurrency associated with Litecoin blockchain to provide a payment system within the system. This confusing state of Litecoin seems to derive its characteristics from the Ripple Inc. and XRP situation which points to separation of the two entities.
“Litecoin is a decentralized network and currency. Litecoin Foundation (LF) is a centralized non-profit organization whose mission is to advance Litecoin development, adoption, and usage. I am the creator of Litecoin and the Managing Director of the LF. I know this causes quite a bit of confusion, but hopefully I can set the record straight. Litecoin doesn’t need LF or me for that matter, but I’m working hard with LF to make Litecoin a success.”
-Charlie Lee on his Reddit post
In the process of finding the best approach to make Litecoin one of the best blockchain projects in the world, Litecoin Foundation is tasked with developing and nurturing the blockchain as a non-profit organization. Actually, Mr. Lee stated in his statement that “no money goes to LF” when investments are placed on LTC. Last year the Litecoin Foundation took over from Litecoin Association, the prior custodian of the blockchain.
Litecoin Foundation Partnership with Token Swiss AG
The clarification of separation in the two entities has not in any way affected the price of LTC. Litecoin Foundation partnered with TokenPay to acquire 9.9% of the WEG Bank AG in a bid to diversify its reach to the fiat currency holders. Given the close relationship to LTC, Mr. Lee spoke of his commitment in providing debit cards to LTC holders from the bank offering to ease payments. This will also open up the way to an increase in merchants who are willing to accept LTC payments through easy merchant processing.
“Best case is that with this bank, we are able to create and deliver crypto solutions like debit cards, merchant processing, and other innovative solutions. However, even with a stake and influence at the bank, it’s not guaranteed that this will succeed… Just like Bitcoin is not affected by Bitcoin Foundation’s failures, Litecoin is not affected by Litecoin Foundation’s failures.”
As seen in the Litecoin/ LF relationship above, and as is with the relationship between Ripple Inc. and XRP, cryptocurrencies still have a long way to go to be accepted by institutional investors. Having cryptocurrency companies advocating for them however, gives a sense of belief to any enthusiast of the possibility to gain mass adoption someday.