- The Litecoin Foundation is running out of Funds, Is Litecoin Nearing its End?
- $137,000 Was invested in Employees and $36,000 in Marketing
It appears the Litecoin Foundation is having some issues. Recent events have drained the network and it is understood that there is hardly any money left for the foundation. Per the report, the income of the Litecoin Foundation fell by a Million USD in the last year.
What Led to the Crisis?
The deduction of a Million USD was as a result of the $830,000 donation. While the revenue gotten from good’s sale generated about $200.000. However, what remains unclear in the whole debacle is the revenue received from T-Shirt sales (with the “Hodl”-print and sales for the “Litecoin Summit”).
80,000 LTC Loss
For this year alone, the foundation recorded a series of loses in merchandising strangely enough. The $80,000 loss which is equivalent to $280,000 in revenue and the other loss of $200,000 seems high. How you can a network lose money through T-Shirt sales? This may seem farfetched. However, it could also be as a result of the conference, which is expected to begin in a few days.
Speaking about the length of the remaining assets of the foundation would go Charlie Lee, the founder of Litecoin-founder said:
“We have done a quick estimate. Our current duration lies between 1 to 2 years. Of course this will depend on how the expenses for the Litecoin-look summit will be.”
He added that:
“Today we still have about $200,000, which can offer us about two years of life.”
$137,000 Was invested in Employees and $36,000 in Marketing
The actual figures given by the network show that the foundation invested $137,000 in employees and $36,000 in Marketing. Another $24.500 went for lawyer fees. While $4,500 was spent on advertising. These figures are indeed questionable, hence, it is surprising to expect $200,000 to be their lifeline for two years.
Per a previous report, it is understood that in the past year alone, the Litecoin Foundation has acquired about 10% of the way to the Bank. They also hold the option to buy additional 80%.
The Foundation has only set aside $1,500 for Software issues and Cloud Services which could be the actual of the cost of the platform, excluding the cost development which was not even mentioned.
This may be because no trading takes place. Yes. Because LTC founder, Charlie Lee has sold of his Litecoin-stock during the bull market of December 2017.