Litecoin rose to sixth place in the cryptocurrency world, by market capitalization, and was pushing to hit $300 per token yesterday, after a few weeks of experiencing a small decline.
It has since fallen back down to seventh place today, and is showing a value of $291. Yet, that value means it is still up more than 16 percent against the United States dollar.
Litecoin dropped below $300 following an announcement from its founder, Charlie Lee, who was a past director at the cryptocurrency exchange, Coinbase. Lee shared that, in order to avoid conflicts of interest, he planned to sell all of his holdings.
He explained, “Litecoin has been very good for me financially, so I am well off enough that I no longer need to tie my financial success to Litecoin’s success.”
Litecoin continued to plummet from close to $320 on December 20th, to a value of $210 two days afterwards as speculation over Lee’s intentions in selling off his Litecoins caused people to have doubts about its future.
A few cryptocurrency watchers believed that his actions meant that he no longer had faith in Litecoin, whereas others were of the opinion that he was probably switching out his Litecoin in favor of different digital currencies.
Saturday’s gains seem to show a renewed faith by investors in the currency, most likely prompted by another announcement from Lee, given at the end of December. He shared on Twitter that he needed to back away from Litecoin in order for it to succeed.
“Seeing how people lost trust because I sold makes me more convinced that it was the right move,” he shared. “Litecoin was too centralized and dependent on me. Eventually, for Litecoin to succeed, I need to step away.”
Lee went on to say that he planned to wait until Litecoin reached an all-time high again before he would step aside. Lee created the cryptocurrency back in 2011.
Above Litecoin, holding the sixth place position, is the digital currency, NEM. NEM is advertising itself as a smart asset blockchain built for performance.