Today marks a momentous day for Litecoin: the launch of LitePay. Initially, with the launch of LitePay, Litecoin’s market value increased 10%. This was a positive start for the emerging cryptocurrency, however, it didn’t last long.
In the last 24 hours, Litecoin’s value has gone down from its original value by 4%. This downward trend began quickly when LitePay announced that they were delaying the release of the Litecoin visa card.
The Litecoin visa card was a big draw for a lot of investors. Its actioning would have allowed them to spend their Litecoin currency at willing retailers and give them direct access to the funds in their LitePay wallet, so the withdrawal of this service greatly underwhelmed a lot of potential investors.
The decision to withdraw the card was announced on Twitter, with the creators of Litecoin blaming the ‘hostile actions’ taken by card companies towards cryptocurrencies. Earlier in the year, some card issuers pulled their backing from established cryptocurrencies such as Bitcoin. It seems that the refusal to support the use of cryptocurrencies comes from the concern of the values suddenly decreasing.
Market instability is also somewhat of an obstacle when it comes to businesses integrating cryptocurrencies as part of their payment options. A decline in value could affect business profitability. However, the release of the LitePay card could have had some positive outcomes for willing businesses. The card was only going to charge 1% on sales rather than the standard 3% charge most issuers take. On top of that, there would be no chargeback losses that plague a lot of small business owners who accept credit card payments. All in all, the LitePay card could have paved the way to wider acceptance of cryptocurrencies among businesses.
At the moment, it is unsure if the BitPay visa card is simply delayed or whether the service will be completely dropped. All signs would point to the eventual release of the card – perhaps once the upcoming TenX card has been released and proved successful.
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