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What Crypto Really Thinks About Litecoin’s Banking Ambitions

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weg bank ag

It was news that was perhaps too strange for crypto’s typically divided reactions.

First revealed Wednesday, the Litecoin Foundation, the non-profit that develops the software that powers the sixth-largest cryptocurrency, bought a stake in a very real, non-crypto bank. The move was met with applause and skepticism, but also a stunned sense of disbelief from nearly all sides.

Was it a sign that crypto is becoming so powerful it will soon overturn the rule of banks?

Certainly that theory was well-represented in the initial reactions…

Indeed, the news had imaginations operating at full speed, with some going so far as to think that the crypto industry might be on a bank buying spree.

What the companies said

But while some were looking into a possibly far-off future, others took a more measured look.

First, there was the news itself. Specifically, the Litecoin Foundation acquired 9.9 percent in WEG Bank AG, a small firm with one office in a German town called Ottobrunn.

It wasn’t all the Litecoin Foundation’s doing either. Rather, it bought the shares directly from a new partner, TokenPay, which offers blockchain instruments for businesses. In May, TokenPay announced it had bought 9.9 percent of WEG Bank AG, at the time saying it was going to help the bank develop fintech solutions.

The press release also said TokenPay had an oral agreement to bring another, “world renowned” company to the partnership, and that it was in negotiations with another bank in Liechtenstein.

As it turned out Tuesday night, the “world renowned” partner was Litecoin Foundation, the organization’s head Charlie Lee proudly announced.

A TokenPay employee later explained that the new partnership will help the bank facilitate and speed up transactions using blockchain, at the same time reducing transaction fees.

A measured look

But some in the community weren’t quite ready to fantasize.

Wasn’t the whole point of crypto to escape the world of banks and build a new one, with no banks, no central banks, no old financial infrastructure and rules?

From this perspective, the news sounded disappointing to some.




Others thought the news was simply overhyped.

When moon?

Still, others had their sights fixed a bit more firmly on the charts.

While the news sounded game changing, it didn’t cause any change in litecoin’s price dynamics (on Wednesday, after the news broke, the price spiked to $81). However, this is a far cry from the cryptocurrency’s price highs.

Litecoin has been on the downslide since January when it soared to $331, and it seemed the partnership has done little to change that direction, something commentators were quick to point out.

As the news shows, you just can’t please everyone in crypto!

Charlie Lee (right) image via CoinDesk archives 

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Spectrum Offers Unbeatable Entertainment For The Best Value

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Spectrum Entertainment

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As a premier destination for premium original series available exclusively to Spectrum TV customers. Now available! You can watch L.A.’s Finest, Free on Demand, anywhere on any device.

L.A.’s Finest: From the universe of the Jerry Bruckheimer “Bad Boys” franchise, the one-hour series followed Syd Burnett (Gabrielle Union) and Nancy McKenna (Jessica Alba_. Taking on the most dangerous criminals in Los Angeles while skirting the rules, and speed limits, Syd and Nancy become a force to be reckoned with — on the streets, and in each other’s lives.

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Where Did Jay Stark Come From?

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Jay Stark

Sunshine State

When asking Jay Stark where he is from, he laughed and said he’s from the earth where all of us are a big family on a journey to make the most of our limited time together. After digging deeper, he told us he’s from the Sunshine State but definitely enjoys the cold atmosphere more.

Growing up as a kid, one of his dreams was to travel the world and learn new things. He now spends his time traveling the world doing life-changing workshops while embracing different cultures around the world and spreading good vibes everywhere he goes.

Jay Stark
Jay Stark

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Who is Jay Stark?

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Jay Stark

Jay Stark is an author, speaker, and consultant who lives to inspire and empower people to realize that they are capable of achieving any desire if they put their heart and soul into it with a pinch of their mind.

Jay Stark
Jay Stark is an author, speaker, and consultant

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