Charlie Lee, the creator of Litecoin [LTC] and the Managing Director of Litecoin Foundation, recently spoke at the Annual Litecoin Summit. In his speech, Lee addressed the issue that many detractors of Litecoin bring up, namely that he sold his portion of Litecoin when it was at an all-time high in December.
This has been a talking point for many in the Litecoin community, as those who speak against the cryptocurrency state that even the creator of the coin sold all of them. Moreover, the prevalent argument is that Charlie Lee has no “skin in the game”, which is to say that he has no financial motivation to continue the development of Litecoin.
He began his keynote speech at the summit by speaking about this issue, presenting with a meme that said “Believe in something, even if it means selling everything…Just Exit”, with a picture of him. While he stated that he was upset the first time he saw it on Twitter, he said that he agreed with it because he believed in Litecoin so much that he was willing to sell everything. He stated:
“The first question people people ask is, ‘Then I don’t have skin in the game’. What if Mark Zuckerberg sold all his Facebook shares, what does that mean about Facebook. That means he doesn’t believe in it right. So why can I sell all my Litecoins and still believe in it that doesn’t make any sense.”
He went on to explain that Litecoin is not a company, which means that the price of the coin is not tied to the success of a company. In the case of Mark Zuckerberg, Lee stated that he works for the shareholders so he can increase the price of the stock and then profit. However, in the case of Litecoin, Lee stated that “it doesn’t really matter too much”.
Elaborating on this, he stated that it was because Litecoin was decentralized money and that the price doesn’t “matter too much” as long as it was sound money. He stated:
“I’m focused on adoption for Litecoin. I’m not focused on the price. The price will go up, the price will do what the price stuff does. Adoption is what I care about.”
Moreover, Lee explained that wanting the coin to succeed would translate as a conflict of opinion. This is due to the fact that Litecoin was like his baby because he had created it. He went on to say:
“You ask a parent why don’t they have skin in the game with their kids. Why don’t they bet like a million dollars that their kid will get into college? Well, there you see the conflict of interest. You want the kid to succeed in life but you don’t necessarily need to have money on the line because when you do actually have money on the line. You potentially may have some conflict.”
Furthermore, he said that this was the same reason he did not need skin in the game, as then he would do something that hurts the long-term adoption of the coin. He went on to say that it was hard to explain to people because most of them were in it for the money. He stated:
“I’m still using it. I still use it for purchases whenever I can. To me, time is more valuable than money I spend. Right now working full-time on Litecoin and yeah so I definitely have skin in the game. Now I don’t have to worry about money so I can basically work on Litecoin for the rest of my life.”
Lee stated that if he had not sold then he might have to go and work for another company and could not spend time on Litecoin, which would “suck”.