Litecoin was launched in 2011, the digital sibling of Bitcoin
Anyone thinking of investing in Bitcoin or another cryptocurrency should be very careful.
Their values are volatile, with the ability to plummet as quickly as they shoot up.
And investors are frequently targeted by hackers and other criminals who seek to steal their crypto-cash online.
Be especially careful if you are using direct, peer-to-peer platforms to sell and buy cryptocurrencies.
Today the US Securities and Exchange Commission halted a multi-million dollar digital token sale by California-based restaurant review app firm Munchee.
SEC chairman Jay Clayton said there were substantially more opportunities for fraud from initial coin offerings.
The US regulator also warned consumers of the dangers of investing in crypto-currencies issued by firms – the latest in a string of warnings from global regulators.
Why has it spiked?
Litecoin reached a new record on December 11, extending its recent gains and increasing its year-to-date (YTD) returns to more than 4,000%.
On 14 December the price was £222.60 ($299.39) – putting it down 2.9 per cent from the day before.
After beginning out 2017 at $4.33, this latest high represented a YTD return of roughly 4,215 per cent.
The surge can partly be attributed to by the launch of Bitcoin’s futures contract this week, fuelling confidence in cryptocurrency – though in fact the surge had started long before.
Is the cryptocurrency as valuable as Bitcoin?
Bitcoin has enjoyed a meteoric rise this year – but its younger sibling Litecoin actually has more than twice its year-to-date gain.
Compared to its 4,215 per cent rise in value, Bitcoin’s 1,800 per cent rise pales in comparison.
But Litecoin is considerably cheaper at the moment, with the $312.040 unit price a fraction of Bitcoin’s £12,626.16 – as valued on December 12.
Whatever happens, the 30 per cent leap in Litceoin’s value this week certainly speaks volumes for the astronomical rise of cryptocurrency.
via The Sun
Brian is an experienced journalist and crypto enthusiast. Founder of CryptoCurry – famed for his insightful input on the future of cryptocurrencies and blockchain technologies.