Popular silverbug and Golden State Mint head TruthNeverTold recently took to his YouTube channel to once again call out the cryptocurrency market as little more than a Ponzi scheme. Specifically, he claims that Litecoin and its founder, Charlie Lee, are prime examples of duping unsuspecting investors.
As Bitcoinist reported on December 20, 2017, Litecoin founder Charlie Lee “sold or donated” his entire Litecoin wealth to avoid “conflicts of interest” arising from its growth. Interestingly, Lee sold the very top of Litecoin’s unprecedented pump — something which TruthNeverTold views as an obvious profit-taking exit from a nothing-for-something Ponzi scheme.[embedded content]
He sold out everything at the top. Good on Charlie Lee! Great job! But you just proved the fact that, as I’ve been saying since 2011, early adopters take something that has no intrinsic value, they set about building the perceived value to an unsuspecting public, only to sell that illusion for something that has real value.
The YouTuber also takes issue with Lee’s reasoning. The Litecoin founder explained, at the time:
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. […] For the first time in 6+ years, I no longer own a single LTC that’s not stored in a physical Litecoin.
For TruthNeverTold, Lee all but admitted that he cashed out at the top of the bubble, selling cryptocurrency for fiat and ensuring his long-term financial success.
Charlie Lee has since defended his actions as benign and well-intentioned. Despite the fact that the Litecoin 00 market crashed substantially and never recovered since the point of Lee’s sale/donation, Lee claims his actions has no effect on the market, stating:
I didn’t actually have that many litecoins. My selling litecoins didn’t actually affect the market itself but the fact that I had litecoins and people were thinking that I might dump it on the market actually was an issue.
Lee also believes Litecoin will eventually bounce back, explaining:
I still think it was the right move but I question whether — I think in the long run it was the right move but in the short term while the price is down, below the all-time high, it just feels like it’s not the right decision. But I think like, moving forward, five years down the road, when the price is back to the all-time high, I feel like it will be the right move.
What do you think about Charlie Lee selling his entire stake in Litecoin at the top? Do you think Litecoin and other cryptocurrencies are Ponzi schemes, or is TruthNeverTold simply overreacting to a market bubble? Let us know your thoughts in the comments below!
Images courtesy of Shutterstock, YouTube.