Litecoin – sometimes referred to as the “silver” to Bitcoin’s “gold” – has more than tripled since last Thursday. This brings the year-over-year return to more than 8,000%.
Nonetheless, while litecoin was breaking another record (fuelled by trading on Coinbase’s GDAX exchange, the world’s fourth-largest cryptocurrency is trading at an all-time high near $300), its founder Charlie Lee warned the community about the possible dramatic drop in price.
“Ok, sorry to spoil the party, but I need to reign in the excitement a bit… Buying LTC is extremely risky. I expect us to have a multi-year bear market like the one we just had where LTC dropped 90% in value ($48 to $4). So if you can’t handle LTC dropping to $20, don’t buy!,” he wrote in his twitter and added that “every crypto bull” is followed by a bear cycle, as the market needs time to consolidate.
Meanwhile, Litecoin fans don’t lose optimism, pointing out that “Litecoin is now worth more than the entire cryptocurrency market just 15 months ago”.