Litecoin startup in the payment processing LitePay suddenly ceased its activity, the Foundation of Litecoin was announced in a statement on its web site.
LitePay, which is also intended to provide services to the cryptocurrency purse and “debit card LitePay” through which users could convert litecoin to USD, was submitted in December 2017 and was launched in February 2018. Data c OpenGovUS show that LitePay Inc. officially began its activities on 1 February.
But actually LitePay started its work only on February 26 and not in full. In mid-March, the company held a session of Ask Me Anything on Reddit and it was the last major public speech of the representatives of the company.
The Fund, which is engaged in the development of Litecoin, in a post on his blog said that after a conversation with the founder and CEO Kenneth Asare, which occurred after March 16, in which the representatives of the Foundation expressed concern about the “not very transparent nature” LitePay, Azara said that he decided to cease operations and plans to sell the company.
At this time Kenneth is asked to allocate additional funds to continue operations. The Fund refused to further Fund the project, as Kenneth Asare could not provide a satisfactory explanation of where the money was spent previously allocated and refused to provide evidence that would confirm his previous statements.
Fund and the founder of litecoin Charlie Lee expressed regret that he supported the project in the early stages of its existence.
Like everyone else, we were looking forward to this project and did not pay attention to the many negative trends. I’m sorry that I supported this campaign and I promise to continue more carefully to the company.
Like everyone else, we got too excited about something that was too good to be true and we optimistically overlooked many of the warning signs. I am sorry for having hyped up this company and vow to do better due diligence in the future. https://t.co/khIjeHnyZ1— Charlie Lee [LTC] (@SatoshiLite) March 26, 2018
The Litecoin Foundation has made a similar statement:
We are very disappointed that this Saga has ended thus, and we apologize for what has not shown due diligence. We promise to take all measures to avoid this in the future.
Litecoin has shown excellent results even before the idea of the appearance LitePay and the failure of the project will not change anything for this cryptocurrency.