- Litecoin was gunning for $US300 a coin on Saturday, according to data from Markets Insider.
- The surge follows a surprising announcement by Charlie Lee, the founder of the digital currency.
Litecoin, the sixth largest cryptocurrency by market capitalisation, was gunning for $US300 a coin on Saturday after weeks of declines.
The coin was trading at $US283 at the time of writing, according to data from Markets Insider. That’s up more than 16% against the US dollar.
The digital currency fell below $US300 after its founder Charlie Lee, a former director at cryptocurrency exchange Coinbase, said he would sell all of his holdings to avoid conflicts of interest.
“Litecoin has been very good for me financially, so I am well off enough that I no longer need to tie my financial success to Litecoin’s success,” Lee said in a Reddit post.
It fell from around $US320 on December 20 to $US210 just two days later as rumours swirled the interwebs around Lee’s intentions in selling off his coins.
Some cryptocurrency watchers said the move indicated that Lee had lost faith in the digital currency, while others said he was swapping his litecoin for positions into other digital currencies.
Saturday’s gains represent one of its biggest rallies since Lee said he would sell his holdings.
It also follows another surprising announcement by Lee. He took to Twitter on December 30 to say he would “need to step away” from litecoin for it to thrive.
“Seeing how people lost trust because I sold makes me more convinced that it was the right move,” he said. “Litecoin was too centralised and dependent on me. Eventually, for Litecoin to succeed, I need to step away.”
He said he would wait until it returns to all-time highs before stepping aside. Litecoin peaked above $US380 a day before Lee said he would sell his holdings. Lee created the digital currency in 2011.
Litecoin and bitcoin, given the similarities between their technological underpinnings, are often called the silver and gold of the cryptocurrency world.
Business Insider Emails & Alerts
Site highlights each day to your inbox.