Most of us know about Litecoin, but not so much about the newer Litecoin ultra. I hope this post provides some insight into this new cryptocurrency and help you decide whether to invest in it or not. Before you make that investment it is essential to learn all about a certain coin because there have been several pump and dump schemes that started out seeming like legitimate projects.
Origin and purpose
In 2011, Charles Lee created Litecoin as a fork off bitcoin. In a 2013 interview with CoinDesk, he explained that the creation of Litecoin was intended to bring fairness into the cryptocurrency industry. According to him, the use of ASICs to mine bitcoin had made the process unprofitable for individuals using their personal PCs, even with dedicated graphics cards. To prevent this ‘monopolization’, Litecoin uses a scrypt hashing algorithm while bitcoin uses SHA-256.
This mining algorithm is a ‘memory hard problem’, therefore making it inefficient to do with an ASIC. Today, Litecoin is among the most popular coins worldwide, and can be found on most of the major cryptocurrency exchanges. Support for it is also vast, making it a well-established coin in the industry.
Litecoin ultra is also a fork of bitcoin, and it was launched this year on the 11th of July. However, it only went live on the 30th of August according to Coinmarketcap. According to the website, the team behind it claims that they intended to make Litecoin even lighter in order to improve processing speeds. However, we still don’t know about the details of who is behind the project. So far, the coin is only supported by three exchanges – Cryptopia, Nova exchange and YObit.net.
Compared to Litecoin, Litecoin ultra seems like an inconsequential alternative or competitor. The former, Litecoin, has a $17 billion market cap while Litecoin ultra has only $80,000. This is equivalent to just 5 bitcoins! The difference in value is also huge, with Litecoin currently valued at $325 and Litecoin ultra at $0.08. Even the daily trading volume of Litecoin dwarfs that of Litecoin ultra – $1.7 billion to $32,000.
Therefore, in terms of popularity and value, the difference between the two coins is very clear.
Should you invest in Litecoin ultra?
Inasmuch as the Litecoin team may not like to reveal their identities, we do know about the founder of the coin. Furthermore, the support it receives and the common uses of the coin means it can be trusted. On the other hand, Litecoin ultra is virtually unknown and seems like a bad investment idea. For example, if you try to find their whitepaper on the website, it displays a notice that it is ‘Coming soon’.
Who launches a cryptocurrency without a whitepaper? Scammers, that’s who. In fact, when you launch their website, you are redirected to a Wix website, which are free to create. The whole project doesn’t smell right, which would explain the underwhelming support and talk about it. Definitely not a good investment option.