13 Feb The first Litecoin hard fork “Litecoin Cash” (LCC) – Is it worth FOMOing over?
Litecoin Cash: What is it?
An unofficial hard fork of Litecoin, which is basically a clone cryptocurrency which forks off the Litecoin blockchain.
Why “unofficial”? Well.. because Litecoin’s founder, Charlie Lee says so:
A new cryptocurrency named “Litecoin Cash” (LCC) will fork from the Litecoin blockchain at block 1371111
Everyone holding Litecoin will get 10 Litecoin Cash (LCC) for every Litecoin they own.
The Max Supply for Litecoin Cash will be 840 Million compared to Litecoin’s 84 Million, which is why the claim ratio is 10:1
Although Litecoin is mined with Scrpt, Litecoin Cash witll use the SHA256 hashing algorithm.
This is being promoted by Litecoin Cash as a way to extend the life of older Bitcoin mining hardware which is no longer powerful enough to mine Bitcoin.
Since the difficulty of Litecoin Cash will be much lower, it will put less effective SHA256 mining hardware to better use.
Compared to Litecoin, Litcoin Cash also features superior mining difficulty adjustment using the DarkGravity algorithm which is also used by Dash.
This should be considered a “Friendly Fork” because the network will use a new address prefix, unlike Bitcoin Cash did with Bitcoin, which caused much confusion.
How do you get it?
The block of the fork, 1371111, is expected occur sometime between February 18th and 19th so you must be holding Litecoin when this block is confirmed.
Firstly, before getting deeper into how to get the fork, here are some IMPORTANT DISCAIMERS to keep your Litecoin safe.
1) Wait for the fork before doing anything
2) Move your Litecoin to a new address after the fork
3) Use the private key for your old Litecoin address to claim your Litecoin Cash
How to get Litecoin Cash:
1) Download a wallet for your device directly from the official Litecoin Cash website: https://litecoinca.sh/
2) Import your Litecoin private key
3) Claim your Litecoin Cash
Is it legit or a scam?
Although they promote safety measures in order to claim it such as moving your Litecoin before pasting old private keys on the internet, it seems a bit on the scammy side. Charlie Lee’s tweet does explicitly state that anything claiming to be a Litecoin hard fork is a scam.
PSA: The Litecoin team and I are not forking Litecoin. Any forks that you hear about is a scam trying to confuse you to think it's related to Litecoin. Don't fall for it and definitely don't enter your private keys or seed into their website or client. Be careful out there! https://t.co/qXbiIxp5Al
— Charlie Lee [LTC] (@SatoshiLite) February 4, 2018
However, whether Litecoin Cash proves to be a scam or worthless for that matter, if you follow the “Safety Rules” as you claim the fork, there is no risk of losing your coins or being scammed as long as you make sure to never again use the Litecoin address you input to claim the Litecoin Cash fork.
What does it mean for the future of Litecoin?
This Litecoin Cash hard fork and any other similar hard forks which are developed by members outside of the Litecoin core developer group will have a very minimal impact on the future outlook of Litecoin, if at all.
The most likely outcome for this fork should be very similar to Bitcoing Gold, otherwise known as Bgold.
There are a couple reasons why Bitcoin Gold is our best proxy to benchmark our expectations for Bitcoin Cash.
1) Bitcoin Gold’s main points of differentiation vs. Bitcoin are also the mining algorithm and faster difficulty adjustments
2) Bitcoin Gold’s development team is also a small group in China presenting a friendly fork in order to make better use of certain mining equipment
3) They both have bad English, bad Marketing, and made forking announcements on short timelines to push hype and a sense of urgency to receive the fork.
Currently, Bitcoin Gold is trading around 1.5% the price of Bitcoin. I would expect a similar outcome for Litecoin Cash, although in Litecoin Cash’s case, it may be more like 0.15%, due to the 10-1 claim ratio of the fork and higher Max Supply
With all this said.. let’s get back to the point. Is Litecoin Cash worth FOMOing over?
The answer to that question depends how much skin you have in the game, whether this is something to FOMO over, or even to bother with claiming.
For example, If you are the owner of 100 LTC, currently valued around $15K USD, the Litecoin Cash fork could possibly reward you with a couple hundred dollars worth of coin. You could hold them and see what happens, or even sell them and use them to increase your Litecoin holdings.
However, if you’re only holding a small number of LTC, for example 5, this fork may very well not produce enough value to cash out for a happy meal.
So will you FOMO or not? The coice is up to you…