LitePay Release Date for Cards Is Delayed Indefinitelyin News
“Due to hostile actions by card issuers towards crypto companies, we have decided that offering LitePay card registrations at this time is imprudent”.The last-minute announcement comes amid general confusion in the market surrounding its release. Despite the market is well aware of the financial industry’s reluctance to process credit card cryptocurrency purchases, Litepay had not considered making the announcement until the day of the intended launch.
The company has promised to monitor the situation and has pledged to open registration as soon as it can find a reliable product that can support it. Although no more details are as yet known, in January both Visa and MasterCard said they would re-classify cryptocurrency purchases on their cards as cash advances, which incur higher transaction fees. The rift between VISA and WaveCrest caused trouble with the TenX and Wirex cards, and sent the projects out to look for other intermediaries. Instead of an imminent launch, the Litepay team later has stated that merchant registration for the receipt of money in Litecoin (LTC) can be completed. Markets will find it difficult to take away confidence from a heavily watered down delivery of a much-anticipated product. LitePay had announced just under two weeks ago that the application would be released on the 26th of February. The application will allow users to pay for goods and services using the cryptocurrency Litecoin (LTC), with LitePay taking a flat 1% settlement fee for each transaction. Using a network made up of thousands of computers, LitePay claim to be able to settle transactions almost instantaneously, which it claims will nullify any issues merchants and consumers have with price volatility. But so far, there is no telling how LitePay would achieve worldwide acceptance, much less achieve it quickly as it has had its skeptics. Even prior to the failed launch, questions had overshadowed the project’s management. LTC founder and former Google programmer Charlie Lee announced in January on social media that Litepay was not a project under the supervision of the Litecoin community. That admission by Lee severely damaged Litepay’s credibility even though Lee admitted to having contact with the project:
I'm sure most of you are getting this email... Don't worry... remember the banks and #wallstreet do not want this to happen. #PayWithLitecoin is coming.. they can't stop us... #fuckbanks. pic.twitter.com/cqOlINtoWI— Łitecoin Dad™ (@litecoindad) February 26, 2018
Following the announcement of a release date on Wednesday, the value of Litecoin rocketed from $160 to $234 by Thursday morning. The surge led to $2bn being added to Litecoin’s total value and supplanted Cardano (ADA) as the coin with the fifth largest market capitalisation. Since the news, LTC has dropped 5.2%. What is more telling is that LTC’s value against bitcoin has weakened sharply over the hours since the failed launch came to light. Whilst LTC’s market cap fell by $500m from $12.7bn on Wednesday to $12.2bn today, Bitcoin (BTC) took an $18.7bn fall, which was proportionally 6% more than Litecoin.
It's not our project, but we work closely with them.— Charlie Lee [LTC] (@SatoshiLite) January 10, 2018
Have you been waiting for the Litepay launch? Why? Share your thoughts in the comments section below.
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