LitePay was initially introduced in December 2017 and was expected to launch in February 2018. Days ahead of the scheduled launch on March, the start-up contacted users that much-anticipated LitePay, to announce that the advent of the Litecoin debit card will be delayed due to “hostile actions by card issuers towards crypto communities.”
Litecoin Foundation apologized to the disappointed Litecoin users, saying that they declined LitePay’s Kenneth Asare request for more funding, as “he was unable to provide a satisfactory picture of where the money had been spent and refused to go into exact details about the company and show objective evidence to back up his statements.”
LitePay was a payment network that would connect the digital Litecoin to the real world. With the issuance of a VISA-compatible LitePay debit card, users would be able to execute payments everywhere. Additionally, it opens for merchants a new, growing market of buyers with digital currencies. As LitePay would automatically convert the Litecoins into fiat money, merchants wouldn’t need to worry about the volatile nature of cryptocurrencies. Litecoin experienced high gains as the news of LitePay started to spread.
Another benefit with LitePay debit card was the low processing fee (1%) as opposed to the 3% fee associated with credit cards. Notably, the equivalent BitPay charges more than $5 and transactions’ confirmation time is extremely slow.
LitePay would use reliable exchanges with adequate liquidity to pull the rates for the US Dollar. Rates for other currencies than the USD would be based on the Open Exchange Rates API.
LitePay’s website homepage only confirms that the project has been abandoned, “LitePay, Inc has ceased operations due to an inability to source sufficient liquidity or financing.”
What is Litecoin LitePal? When Does LitePal Launch?
LitePal is the Litecoin-first payment processor. It is designed to enable convenient payments by interconnecting buyers and merchants. LitePal would include extremely low fees users would be able to use the service with PayPal, Western Union, Bitcoin and Litecoin.
Not many details are available besides an ambiguous statement on LitePal’s website, that emphasizes the enhanced security of the service and super-fast transactions. The crypto-community has voiced its concerns about a potential scam behind LitePal (having in mind the recent LitePay failure) that Edin Jusupovic, Founder of LitePal tried to mitigate in a post. After apologizing for the lack of available details or roadmap for the project, he clarified the LitePal is still on its early steps, as it is not set to launch until Q3 2018.
According to his words, the community will be excited as soon as he reveals the reputable developers that support the project, in the future. Moreover, as he is specialized in cybersecurity, he strives to deliver a highly secure product that requires precision.
Noteworthy, more available information online around Jusupovic’s history, show that he is a 21-year-old from Sydney has previously been involved in selling malware on the dark web. LitePal has been endorsed by Charlie Lee, a fact that comes in contradiction with his commitment to better due diligence after the LitePay fiasco.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.