While Litecoin enthusiasts might have been optimistic following news that newly-minted Litecoin merchant processor LitePay would champion the broader acceptance of the cryptocurrency in storefronts, the would-be BitPay rival has now abruptly shut down.
LitePay launched with the view of offering a dedicated cryptocurrency wallet as well as a debit card, which would have enabled consumers to convert Litecoin to US Dollars.
The venture was previously met with a warm embrace from the Litecoin Foundation, which applauded the operation for ‘taking the opportunity to create LitePay.us.’
Thanks for the love! We look forward to our public launch in February of 2018, and helping grow, “The Cryptocurrency for Payments!” https://t.co/yuhV4s5eqo
— LitePay, Inc. (@LitePayInc) December 22, 2017
LitePay had previously claimed to have begun its merchant services on February 26th, though concerns were subsequently raised the following month as the Litecoin Foundation sought to discuss the “less than transparent nature” of the emerging business.
Subsequently, LitePay founder and CEO Kenneth Asare elected to suspend all commercial operations. An official post courtesy of the Litecoin foundation elaborated that “Kenneth asked the foundation for more funds to continue operations. The foundation refused any further funding as he was unable to provide a satisfactory picture of where the money had been spent and refused to go into exact details about the company and show objective evidence to back up his statements.”
Litecoin founder Charlie has expressed disappointment over the collapse of the venture – writing on Twitter that “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.”
The Litecoin Foundation has struck a similar tone – elaborating that “we are currently working hard to tighten our due diligence practices and ensure that this does not happen again”.
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
While news of increased vendor support and a planned Litecoin Cash fork previously propelled the price of the cryptocurrency, Litecoin presently trades at just $140 USD at the time of writing.