Litecoin Creator Charlie Lee Hopes for Positive Effects of WEG Bank Stake
The Litecoin Foundation, a grassroots organization dedicated to popularizing Litecoin (LTC), will use its stake in German-based WEG Bank to strengthen further the influence of the coin, as explained by Charlie Lee, creator of the Litecoin network.
However, the owner of the bank stake is not the Litecoin project, which is decentralized and not owned by anyone.
Lee explained in a long Reddit post:
“I am the creator of Litecoin and the Managing Director of the LF. I know this causes quite a bit of confusion, but hopefully I can set the record straight. Litecoin doesn’t need LF or me for that matter, but I’m working hard with LF to make Litecoin a success.”
The Litecoin Foundation received the stake in a barter deal, offering its services in exchange. The banking group shares initially belonged to Token Pay Swiss – a company that carried out an ICO at the end of 2017.
As a result of the partnership, Lee is expected to get a board seat at the bank:
“The deal is that LF receives the 9.9% stake in the bank in exchange for technical work and marketing support for TokenPay, eFin decentralized exchange, and integration with the bank. To be clear, LF did not pay any money for this stake in the bank. The plan is also for me to get a board seat at the bank.”
At the same time, there is no guarantee the bank holding will prove useful. As Lee explained, the best-case scenario would see WEG Bank opening the door to Litecoin-based cards and merchant solutions. However, Lee would only have limited influence through his board position. He added that the Litecoin Foundation does not own Tokenpay assets.
After the recent price recovery, LTC moved up again to reach $90.53. The TPAY token rose by around 9% overnight to $4.34 around 6:30 UTC on Wednesday.