With no white paper outlining the fundamental objective and reasoning behind the fork, and with the developers continuing to remain anonymous, this has led many cryptocurrency experts to postulate upon the idea that Litecoin Cash could be a scam.
Coinbase, the leading USA marketplace for major cryptocurrencies, also announced on Wednesday that it has launched a new service that lets merchants accept bitcoin, bitcoin cash, ethereum and litecoin payments. According to the report, the banking company looks forward to introduce Litepay, a payment system compatible with Visa credit cards. Investors seeking to acquire Litecoin using U.S. dollars directly can do so using Gemini, GDAX or Coinbase.
"We started because the people asked Bitpay to accept [Litecoin]". They wouldn't, so we took the challenge.
LitePay, which says it's based in San Francisco, tweeted late Monday that "infrastructure for LTC [will launch] February 26".
The lure of making quick money on an upcoming hard fork seems to have boosted demand for LTC, although the legitimacy of the project is under question. The split from Litecoin's existing blockchain could provide investors significant returns, though some are warning to approach the fork with caution. The split will give every holder of litecoin 10 coins of "litecoin cash".
The goal of the new currency is to increase the "block speed" at which the network can process transactions.
A fork occurs when a blockchain-the distributed ledger that keeps track of all transactions of a cryptocurrency-diverges. This has been driven largely by its plans to fork into two cryptocurrencies next week. Not entirely dissimilar to Bitcoin Cash's forking from Bitcoin, Litecoin Cash claims to be better than its predecessor - though there's little evidence to support such a claim. Any forks that you hear about is a scam trying to confuse you to think it's related to Litecoin.
"Since on the topic of scams, any fork of Litecoin, calling itself Litecoin something or other, is a scam IMO".