Litecoin has recently been in the middle of recent controversy. News out of cash out on Monday that store giant Walmart had partnered with Litecoin to start recognizing payments in the cryptocurrency. The particular official-looking press release from both GlobeNewswire and Reuters was shared by major press outlets. And more importantly, had been shared by the official Twitter account for Litecoin.
Less than an hour after the information broke, it was confirmed that there had been no partnership. In the long run, it looked to be a water pump and dump scheme. Impacting the price of Litecoin, which experienced grown up to 35% in one hour after the press releases proceeded to go up. Reuters has since pulled down their pr release and replaced it having a retraction confirming that news of the partnership had been artificial.
Related Reading | Visa CEO Says Crypto Could Become “Extremely Popular” In Five Years
Charlie Lee, the creator of Litecoin, had been on Bloomberg News to talk about the hoax and Litecoin’s involvement in it. Lee solved that the press release did not result from the Litecoin Foundation. Nor was the hoax perpetrated by anyone associated with the foundation. The founder denied that their foundation had anything to do with the release and would work towards exposing the parties behind it. “Pretty much anyone, if they want the price to pump, they can release this particular fake news, ” Lee added.
Shelter explained that the foundation is extremely careful about not placing out fake news since it reflects badly on the market. But admitted that while they will try to not tweet out there fake news, “This period, we really screwed up and we will try harder to not do that. ”
LTC price corrected back down to earlier levels before pump | Source: LTCUSD on TradingView. com
Litecoin Foundation Has No Incentive To function And Dump
Litecoin is a decentralized cryptocurrency, which means that anyone could write-up out fake news in the bid to pump the price. And the Litecoin Foundation would have no benefit from operating a water pump and dump scheme.
The founder required stricter vetting protocols and fact-checking policies for journalism would be the best course of action to combat issues like this. Shelter also mentioned that the press outlets which published the press release were in talks with the parties who submitted it. In an effort to track down in which the [fake] information originated from.
Related Reading | Breaking: Walmart Denies Litecoin Payments Rumours
On their end, the particular Litecoin Foundation is upping its vetting process to ensure news is confirmed just before they tweet it. The founder explained he understand how much power their Twitter handle carries. And as such, they are going to make sure to fact-check news before they post it.
The foundation released the statement stating that they by no means entered into a partnership along with Walmart. “We have no details as to where this idea or the release to the push originated. The Litecoin Basis has not entered into a partnership with Walmart of any sort, ” the statement examine.
Featured picture from Kryptomoney, chart through TradingView. com