Crypto

There’s a Crash-Defying Crypto Token Amid FTX’s Collapse

The Litecoin crypto token rose 43% in the month of November due to an upcoming change in its mining rewards and the issuance of new coins. Photo: Jakub Porzycki/NurPhoto via Getty

A digital asset slips away cryptothe downtrend, rising 43% to a six-month high as the majority of the cryptocurrency market plunges after the FTX exchange collapse.

Litecoin (LTC-USD) rose 43% from $55 to $78.14 in the month of November due to an upcoming change in its mining rewards and the issuance of new coins.

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The so-called “Litecoin Halving” will reduce the rate of creation of new Litecoins and thus reduce the available amount of new supply, which generally encourages price appreciation.

Litecoin has traded flat over the past 24 hours.

Trust in the crypto industry has taken a hit since the fall of FTX.

Unlike Litecoin’s surge, crypto market leaders are bleeding.

bitcoin (BTC-USD) fell 0.7% last week to $16,568, while Ether (ETH-USD) fell 1.6% to $1,195.

When Litecoin was launched in 2011, miners received 50 Litecoins for successfully mining a block.

This reward, also known as the “grant,” is halved every 840,000 blocks, or roughly every four years.

The third halving takes place in 2023 and will see the current subsidy of 12.5 LTC reduced to 6.25 LTC.

Read more: FTX bankruptcy sees 80,000 UK crypto investors lose funds

Litecoin saw an equally bullish move against the majority of the market in the months leading up to previous halvings in August 2015 and August 2019.

The digital asset hit its highest level since May this year.

However, it did not cross the trendline characterizing the bear market that started in April 2021.

Litecoin is still far from its all-time high of $381 reached on May 10, 2021, on the eve of the cataclysmic crash of Terra’s UST/Luna stablecoin.

What is Litecoin?

Of the thousands of cryptocurrencies in existence, many do not have unique use cases or tokenomics to merit exceptional qualities. Litecoin has been around for over a decade and is considered bitcoin’s silver lining.

As a digital asset, it is similar to bitcoin in that it is validated through a power-intensive proof-of-stake consensus algorithm. Litecoin has a finite supply of 84 million coins, while bitcoin’s maximum supply will always be 21 million.

The value of each litecoin is much lower than that of each bitcoin and it can be mined using “ordinary” computers.

Dogecoin (DOGE-USD) is “melted mined” when a CPU mines Litecoin. Litecoin miners acquire a batch of dogecoins each time they mine a block on the Litecoin blockchain.

The cryptocurrency was created by a software developer Charlie Lee in 2011. Lee was Coinbase (PIECE OF MONEY) Director of Engineering until 2017.

Litecoin had a fair launch in 2011, and it was reported that Lee did not give himself a pre-launch share, unlike many other crypto projects.

Although he mined Litecoin in the beginning, Lee has now said that he has sold all of his LTC.

Litecoin is not controlled by any centralized body and has a decentralized mining distribution of around eight major mining pools.

There is a Litecoin Foundation based in Singapore that has the stated goal of “advancing Litecoin for the benefit of mankind”.

Solana Crashes as Litecoin Pumps

The panic following the collapse of FTX has not been good for Solana (SOL-USD).

Solana’s price has fallen this month, and there are no signs of a bullish reversal in place here.

Solana received substantial support from Sam Bankman-Fried’s Alameda Research early in its design.

The Swiss-based blockchain and cryptocurrency is also worth millions of dollars still locked on the FTX exchange.

Solana network native token, sol, traded flat this week, with a price of $14.46 at the time of writing.

Last week, crypto exchange Binance announced that it was temporarily suspending USDT deposits (USDT-USD) and USDC (USDC-USD) on the Solana network, which did not encourage investor confidence.

Deposits eventually resumed on Binance, reducing the fallout from Solana’s FTX exposure.

Watch: Get Your Money On Exchanges,’ Warns Bitboy Crypto After FTX Scandal | The Crypto Mile



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