The fifth largest cryptocurrency on the market surpassed $80 per coin Friday afternoon, as more well-known digital currencies such as bitcoin and ethereum continue to reach new heights.
- Litecoin cash officially split from litecoin on Sunday.
- Both litecoin and the new cryptocurrency are up Tuesday, but have no relation in anything other than name.
Litecoin is up more than 9% Tuesday morning after the cryptocurrency’s first “hard fork” produced litecoin cash over the weekend.
The split officially happened at litecoin block 1371111, processed at approximately 11 a.m. ET Sunday, at which time litecoin holders had the option to receive 10 of the new cryptocurrency for every 1 litecoin they already held.
Since the fork, Litecoin has gained 12%, while the offshoot — which is not associated with the original litecoin in any way — has more than tripled, and was trading at $7.40 at the time of writing.
Litecoin creator Charlie Lee has previously warned that any litecoin offshoots could be potential scams.
“Any forks that you hear about is [sic] a scam trying to confuse you to think it’s related to litecoin,” he tweeted. “Don’t fall of it and definitely don’t enter your private keys or seed into their website or client.”
Still, the team behind litecoin cash maintains the new coin will make several improvements over the original litecoin — and that it is far from a scam.
Specifically, the team claims litecoin cash’s new algorithm, called DarkGravity, allows the mining difficulty to be adjusted on every cryptographic block. Litecoin’s mining difficulty can only be adjusted every 2016 blocks. This allows the network to be more flexible to demand for mining power.
“While this [naming] convention isn’t ideal, it will be instantly understood by most hearing the name that Litecoin Cash is a hard fork of Litecoin,” Litecoin Cash foundation’s design lead, Michael Wyszynski told Business Insider. “We have no doubt that there will be Litecoin forks in the future that will be scams, as well as things presenting themselves as hard forks that are nothing of the sort.”
Litecoin cash only appears to be supported on the Russian YoBit exchange, which last year was investigated by the government over fraud accusations and hashundreds of complaints on CryptoCompare, a Yelp-like review site for cryptocurrency exchanges.
Litecoin is up more than 6,000% in the last year.