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SUGGESTED GUIDE ON CRYPTOCURRENCY MASS ADOPTION IN KENYA AND BEYOND BY BEING AML

In all aspects, Litecoin looked like a budding medium of exchange that could one day surpass bitcoin when the curtain dropped on 2017. Then, things changed.

Litecoin's embarrassing gaffe

In mid-February, with cryptocurrencies reeling from their first major decline in years, Litecoin caught fire. Though a number of catalysts helped buoy the LTC token, the biggest of them all was the announcement that LitePay, a payment platform specifically designed to support Litecoin (although it was developed independently of Litecoin), would be going live by Feb. 26, 2018.

Litecoin had requested to join BitPay but was denied. So the development of LitePay was expected to be groundbreaking. It would have allowed users on mobile devices and desktop computers -- and perhaps even with linked debit cards -- to purchase goods and services with Litecoin tokens, which could then be transferred into fiat currencies, such as the U.S. dollar, British pound, or Japanese yen. A flat 1% was expected to be charged per transaction, with the ultimate goal of speeding up adoption of the LTC token as a medium of exchange. And, best of all, transactions would settle nearly instantaneously, reducing the concerns retailers would have about crypto volatility eating into their margins. 

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Unfortunately, LitePay turned out to be nothing more than a mirage, and now Charlie Lee, who'd promoted the project as a means to increase the mass adoption of Litecoin, has egg all over his face.

On March 5, a week after LitePay was supposed to have gone live, its developers noted in an email that it was still "checking all perspective merchants" and was holding off on card registrations "due to the negative perception and drastic actions card issuers have toward cryptocurrency companies," as reported by CNBC.

But less than two weeks later, on March 16, LitePay CEO Kenneth Asare informed Litecoin, which was an investor in the LitePay project, that it was ceasing all operations and planning to sell the company. In literally one month's time, Litecoin went from hyping its own payment platform to breaking the news to investors that the LitePay project was essentially dead.

Litecoin founder Lee wrote in a tweet: "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." 

What you see isn't always what you get

Cryptocurrency investors may have to get used to disappointments like this roller coaster ride with Litecoin. You see, the crypto market is unregulated, meaning it can be something of a Wild West when it comes to promotion, product development, and partnership announcements.

beta launch of its Data Marketplace -- a blockchain-based network designed to allow businesses to share or sell unused data -- in November. Around three dozen brand-name companies acted as participants for the Marketplace, providing critical feedback for IOTA. However, somewhere in IOTA's announcement it was assumed these companies were partners, which pumped up the MIOTA token (IOTA's coin). IOTA had to clear things up a few weeks later, which pushed the MIOTA token lower and took the wind out of IOTA's sails. " data-reactid="95">For example, there was mass confusion surrounding IOTA late last year after it announced the beta launch of its Data Marketplace -- a blockchain-based network designed to allow businesses to share or sell unused data -- in November. Around three dozen brand-name companies acted as participants for the Marketplace, providing critical feedback for IOTA. However, somewhere in IOTA's announcement it was assumed these companies were partners, which pumped up the MIOTA token (IOTA's coin). IOTA had to clear things up a few weeks later, which pushed the MIOTA token lower and took the wind out of IOTA's sails. 

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Even Litecoin has had more than one instance where things didn't go as planned, beyond the LitePay gaffe noted above. In February, Lee denied that a separate group of developers was forking Litecoin into a new cryptocurrency known as Litecoin Cash; yet the Litecoin Cash fork did actually happen (albeit it's crashed more than 95% since the hard fork). 

The point being that surprises are becoming more of a norm than an exception in the crypto marketplace, and it's not something the Securities and Exchange Commission can do a lot about until regulations are beefed up. While regulation is often viewed as the enemy of virtual currencies, an increase in oversight should help lay a foundation and build trust with investors.

The question is: How long do we have to wait before the U.S. government increases oversight on cryptocurrencies so these gaffes become a thing of the past? Until we have an answer, investing in virtual currencies will remain an incredibly risky venture.

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Sean Williams has no position in any of the stocks or cryptocurrencies mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares), but has no position in any cryptocurrencies mentioned. The Motley Fool has a disclosure policy." data-reactid="128">Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Sean Williams has no position in any of the stocks or cryptocurrencies mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares), but has no position in any cryptocurrencies mentioned. The Motley Fool has a disclosure policy.

Source : https://nz.finance.yahoo.com/news/embarrassing-litecoin-apos-touted-payment-132100855.html

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